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E. Lee Smith's Blog

By E. Lee Smith | Mortgage Broker
or Lender in Austin, TX
  • Is lack of down payment preventing you from buying a home?

    Posted Under: Rental Basics in Pflugerville, Rent vs Buy in Pflugerville, For Rent in Pflugerville  |  November 6, 2013 10:23 AM  |  401 views  |  No comments

    So you want to buy a home but... you don't have enough money saved for a down payment. You're not alone. According to Tulia's American Dream Survey, down payment remains one of the largest obstacles to home ownership, for first time buyers.

    If you want to buy an owner occupied home in Texas, with a maximum purchase price of $260,000, you have a credit score above 640, income below $84,000 annually, and you can meet the qualifying criteria for an FHA loan, you could be eligible for a down payment assistance grant.

    There are multiply agencies like the Texas Department of Housing & Community Affairs, Texas Housing Association and the South East Texas Finance Corporation that can help you to get into a home with little, to no money down. These agencies offer down payment assistance grants that are essentially gifts. The grants are 3%, 4% & 5% of the funded loan amount and are used in conjunction with an FHA loan, which require a minimum 3.5% down payment.

    There is no minimum borrower contribution required and there is a maximum of 6% seller concessions (seller paid closing costs), for these loans. As a savvy buyer, you could use the grant to pay for the down payment, negotiate the seller to pay the closing costs, allowing you to put less than a typical rental-deposit down on your new home.

    Stop throwing your money away on rent! Invest in yourself! Buy an appreciating asset, at historically low (tax deductible) interest rates. With no money down, it will be the greatest investment you could ever make!!!

    There are many programs; some are easier to qualify for than others. Please call or email me today, to discuss which finance options would best fit your needs. I can also help place you with qualified real estate agents, who will help to structure the purchase as highlighted above.

    Thank you for reading and good luck with your home purchase!

    E. Lee Smith


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