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Are you a first-time homebuyer in the St. Louis area? Did you know that there are down payment assistance programs available to help you purchase your dream home? Downpayment assistance programs can significantly reduce the upfront costs of buying a home, making it easier for average buyers to break into the housing market. Let’s take a look at how down payment assistance works and why it can benefit St. Louis homebuyers:
What is Down Payment Assistance?
Down payment assistance (DPA) is money given to home buyers to help pay for their down payment and closing costs. DPA can be provided by local or state governments, lenders, nonprofit organizations, or employers. The amount of DPA varies widely depending on the program and where it comes from; but regardless of where it comes from, DPA can make a huge difference for first-time buyers who are strapped for cash.
Who Qualifies for Down Payment Assistance?
Down payment assistance is generally reserved for first-time homebuyers who meet certain income requirements. However, some programs are open to all buyers, regardless of income level or whether or not they are first-time buyers. It’s important to note that eligibility requirements vary from program to program, so it’s important to do your research to find out which ones you may qualify for before applying.
How DPA Can Benefit St. Louis Homebuyers
St. Louis real estate costs are trending upward. That can be daunting for first-time buyers who don’t have enough saved up to cover both their down payment and closing costs. With DPA, however, they can make up the difference and still have enough cash left over to cover other expenses associated with buying a home, such as inspections and repairs.
Finding Down Payment Assistance Programs in St. Louis
If you’re looking for DPA programs in St. Louis, there are plenty of options available. The State of Missouri offers several different types of assistance; and there are also local non-profits that may be able to help. Finally, many banks offer down payment assistance programs with no interest rates, either through FHA loans or special loan products, such as Freddie Mac’s Home Possible program.
Downpayment assistance programs are a great way for first-time homebuyers in St. Louis to get into real estate without having to worry about coming up with too much cash up front. Whether you’re looking for grants from local non-profits or special loans from banks, there are lots of options available that can help make owning a home more affordable than ever before. So, if you’re considering buying a house in the near future but aren’t sure how you’ll come up with enough money for both your down payment and closing costs, then consider researching down payment assistance programs — you could save yourself thousands of dollars.