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With an inflated economy and housing market, many first-time and millennial homebuyers in Texas are unable to fathom a home purchase in the near future. In fact, a recent study found that 50% of millennial homebuyers’ top concern is having enough money for a down payment. Many of which are also veterans hoping to take steps towards long-term financial investments.
The majority of these homebuyers have the common misconception that you need 20 percent down to purchase a home. This misconception along with the increased cost of living has led over 65 percent of millennials to seek a secondary income source.
Traditionally, down payments have been between 10-20 percent of the home’s asking price – but what a lot of people don’t know is that you may qualify to for down payment support. These assistance programs make it possible for individuals to buy a home with less or no money up-front.
Thanks to federal, state and local programs, millennial veterans may be able to purchase a home with nothing or very little down. While many of these programs are intended for first-time homebuyers, there are several grants, loans, and tax credits available to people who have already bought and sold homes.
What is Down Payment Assistance?
Down payment assistance can come from a local/state housing authority, nonprofit, a lender depending on the type of program. These support programs give you the cash you need for a down payment on a mortgage loan.
There are three types of down payment assistance programs:
- Grants:This type of assistance never has to be paid back.
- Loans:You eventually pay back a loan but sometimes these loans are interest-free.
- Tax credits:You get a tax credit, which saves you money that you can then use for a down payment.
You may not qualify for every type of program; many have income requirements or are only available for first-time homeowners. Luckily, there are also programs available specifically for veterans that may have already bought or sold a home.
The Department of Veterans Affairs backs loans for qualifying veterans, service members and some dependents of each. If you qualify, you don’t need a down payment; your lender will finance the entire purchase price. The reason VA Loans exist is to offer eligible veterans and their surviving spouses with reliable options for long term financing.
Who is Eligible for a Veteran’s Loan in Texas?
- Active-duty personnel
- Reservists/National Guard members
- Some surviving dependents
These programs exist to help people who are unable to supply the traditional down payment needed to buy a home. While you’ll still be subject to credit and other eligibility requirements, down payment assistance programs allow millennials and veterans the opportunity to imagine homeownership in the future.
Please contact us for more information or questions regarding eligibility VA loans in Texas.