Family finances matter. There are household income thresholds, credit score minimums, and cash reserve requirements. Income thresholds are based on the area median income. Income limits are almost always based on household size, so limits for a family of five are significantly higher than for a single person.
Most down payment assistance programs will require some money down from the home buyer, as well as home buyer education, especially for first-time home buyers, to ensure your long-term home ownership success.
First-time home buyer status. Many down payment assistance programs are designed for first-time home buyers. But, keep in mind that first-time home buyers are defined as someone who has not owned a home in three years, so if you’ve been renting for the past four years, you’re a first-time home buyer again!
But, not all programs are reserved for first-timers. A portion of programs in Down Payment Assistance don’t include that requirement.
Your profession may give you an edge. Some down payment assistance programs are designed for individuals providing an important community service, including educators, protectors, health care workers and veterans. Especially helpful in high-cost markets, the programs help workers live in the community they serve.