Getting Help With Your Down Payment
Just a few years ago, homebuyers could easily secure great mortgage deals with little or no money down. Today, however, things have changed, as lenders try to recover from the financial crisis of 2008 and avoid a repeat. Today it is not uncommon for lenders to demand down payments of 20% or more. For many would-be homebuyers, a 20% down payment is simply not an option. While seller-funded Down Payment Assistance programs (where sellers could contribute up to 6% to a buyer to cover down payment and/or closing costs on FHA loans) were eliminated following the signing of H.R. 3221 - The Housing and Economic Recovery Act of 2008 - there are still opportunities for getting help with a down payment.
The Federal Housing Administration (FHA) insures mortgages made by lenders that are approved to participate in The U.S. Department of Housing and Urban Development's (HUD) programs. Because the loans are insured against default for the FHA, it may be easier for some borrowers to qualify for a mortgage.
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