One of the misconceptions I constantly see, especially among first time home buyers, is how much money you need to save before you can buy a home. What I want people to understand is that not only can you get an FHA loan, which only requires 3.5% down, but you may also qualify for a buyers assistance program. The program in particular that I am talking about, that every lender should be mentioning to first time home buyers, is the Home Is Possible grant. This down payment assistance program is available through the Nevada Housing Division. The Home Is Possible grant will give first time home buyers a 4% down payment assistance grant on an FHA loan. Let’s take a look at home important this is.
As I mentioned, the FHA loan only requires a down payment of 3.5%. This means that with a 4% grant, your entire down payment is taken care of and still leaves you a half of a percent towards your closing costs! Now let’s take a look at what this means in dollar amounts so you can really grasp how important this can be for you. On a $170,000 home, you are looking at an FHA down payment amount of $5,950. With title fees and closing costs added in as well you are looking at an out of pocket amount, roughly around $12,000. On a purchase price of $170,000, the 4% grant will provide you $6800 towards this cost. That means, after the grant, you will be able to purchase your first home for only $5200 out of pocket, upfront costs. Take into consideration these are only rough estimates and round numbers to give you an idea of what you are looking at. That big, scary down payment doesn’t look so terrifying now! The best part is, this puts you in a home you now own, and most likely your mortgage payments will be cheaper than renting a similar property. The even better news is, in the end, you now own a solid investment for years to come!
My goal here is to help you begin to understand that there are options out there and programs that can help you accomplish your dream of home ownership. I want to provide you with this information so you are well informed when it comes time to make that decision of your first home purchase. Please do not hesitate to reach out to me if you ever have any questions about this topic, or any other ways I can clarify certain aspects of the home buying experience for you.
Please follow the link below to find out even more about the Home is Possible grant: