Down Payment Assistance 101 - by Laura Ortiz and Alex Perches - REALTORS® with Texas Premier Realty, Silver Spur Group
This is worth the read and has useful links and videos, we promise!
Today we showed some rental homes to a young couple that have been renting for sometime. (More than 5 years). They currently pay $1395 a month for a home in an area they don't feel safe living in anymore. Over the past 5 years, this translates to $83,700 of lost opportunity towards home equity. People have their reasons for renting and owning a home isn't possible for some, we get it. This couple however, wants to buy a home but have never researched it enough to see if they can afford one. Their lease is up in a month and have one of three options. Sign a new 12 month lease, sign a month to month agreement and pay a higher monthly rent and lastly research how much it will cost when they do sign a new lease and end up breaking it once they close on their home. We don't advise breaking a lease if you plan on renting in the future and aren't 100% sure you can get a mortgage loan. It's risky to break a lease so you need to have a plan B in case you don't get approved for a home loan and/or can't sign a new lease because of the recent broken lease. You need to do your own research and review your individual lease agreement, but there are some exceptions.
Their credit isn't the greatest but it's improving. They have some money saved but they think it might not be enough.
To rent a home in San Antonio, you typically need to earn 3x the monthly rent. You'll need to have money for a security deposit which is usually the same amount as one month's rent. If you have pets, a pet deposit of $400 per pet is about average. Some rentals will charge a cleaning deposit, administration fee and not to mention many rental homes don't come with a refrigerator, washer and dryer. When they add up all the fees and deposits ($4,100) they may very well have enough money for a down payment on a home when they combine it with their savings.
My point in all this is that there are down payment assistance programs available for first time home buyers - which if you haven't owned a home in the past three years you are considered a first time home owner. Some of these programs can even be piggy-backed together to get extra benefits.
There are programs available for Teachers, Police Officers, Fire Fighters and EMS, Correctional Officers and Veterans in addition to using the VA loan benefit. This program is called the Homes for Texas Heroes program. https://www.tsahc.org/homebu…/homes-for-texas-heroes-program
There are programs available if you previously owned a home for low to moderate income buyers. This one's called the Home Sweet Texas Home Loan Program. https://www.tsahc.org/ho…/home-sweet-texas-home-loan-program
There's a program for City of San Antonio employees called Home Ownership Program for Employees. (HOPE) https://www.sanantonio.gov/NHSD/Programs/DownPayment…
There's a program for City of San Antonio First Responders called First Responders Homebuyer Assistance Program (FRHAP) https://www.sanantonio.gov/NHSD/Programs/DownPayment…
There are even two different City of San Antonio Homeownership Programs that can assist you with up to $15,000 towards your home purchase. (HIP) and (HIP 120)
There are programs available to help with taxes up to $2,000 per year for the life of the loan so long as you live in the home.
There are even $0 down payment programs available for non veterans under the USDA loan program. There are some areas within Loop 1604 that are eligible however most properties outside Loop 1604 will qualify for this loan. Other restrictions still apply, it's best to speak to a lender familiar with the USDA program.
What we're trying to say is that there's help available if you know where to look and know who to call. We can point you in the right direction. As with almost everything, terms and restrictions apply so let us put you in touch with our team to answer all your questions.
Call, text or email us - Laura (512) 203-3195, Laura@LauraLOrtiz.com,www.laurasellstexas.com or myself at (210) 833-9470, email@example.com, www.teamalexsellstexas.com
Let us know if we can help you, your family or your friends.
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