Home Buying in 60010>Question Details

Ria24, Home Buyer in Waukegan, IL

are downpayment assistance programs a good idea?

Asked by Ria24, Waukegan, IL Wed Jun 17, 2009

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Yes, New Mexico has the MFA which provides assistance to home buyers who are low-income, disabled, or public servants.
0 votes Thank Flag Link Fri Jun 19, 2009
My nephew is taking advantage of the $8000 tax stimulous right now with the purchase his first home as they are able to use some of this money towards closing costs. They still have their down-payment, but if not for these funds, would have had to pay additional closing costs, and now that money can be saved. And funds not used for closing costs, can still be included in their 2009 tax return next year. As I would encourage any buyer, new or veteran homeowner, they should always consult an accountant for the tax year they make a home purchase.
A brief note, if you want to use some of the $8000 towards closing costs, the loan must be a HUD or FHA loan. Conventional loans will still qualify the buyer to the $8000 on the next tax return.
Many counties also have offered down-payment assistance programs, and should always check with your county or better yet, a mortgage person to see if there are any programs currently going on in the county you might want to purchase in (for 1st time buyers). They will usually require the first time buyer to attend a couple counseling classes, which is terrific for young homebuyers.
In summary, YES, I think downpayment assistance programs are terrific. Very few have access to parents with deep pockets and cash to gift their children.
Web Reference: http://peggysbaker.com
0 votes Thank Flag Link Fri Jun 19, 2009
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