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\n <\/div>\n \n Save thousands when buying a home<\/h3>\n
HomeLight-recommended real estate agents are top-tier negotiators who understand the market data that helps you save as much as possible when buying your dream home.<\/p>\n \n
FHA loans are especially important for first-time buyers. Based on data from a recent U.S. Census report, it\u2019s estimated that more than 10% of all home loans<\/a> were FHA-backed. More than 80% of those FHA borrowers<\/a> were first-time homebuyers. First-time borrowers like FHA loans because they are easier to qualify for and let borrowers make lower down payments than some other financing options.<\/p>\n \u201cYou don\u2019t have to be a first-time homebuyer to take advantage of FHA,\u201d says Richie Helali, a HomeLight mortgage specialist. \u201cBut FHA guidelines are a little more relaxed. If somebody\u2019s credit isn\u2019t strong enough, they may not qualify for another loan. But there\u2019s a chance they\u2019ll qualify for an FHA loan.\u201d<\/p>\n There are literally thousands of down payment assistance programs<\/a>. Many are small, local operations restricted to a single city or county. All of them have different rules and requirements.<\/p>\n But what down payment assistance programs do is incredibly valuable. They give or loan homebuyers money for their down payments, one of the biggest expenses when buying a house. This helps remove one of the biggest obstacles to homeownership.<\/p>\n And while not every lender works with down payment assistance programs, and some may restrict the amount of the down payment that can come from down payment assistance, FHA loans<\/a> will allow buyers to use down payment assistance for the entire down payment.<\/p>\n That means if you qualify for an FHA loan and can get into a down payment assistance program, you may be able to move into your new home without having to put a penny into the down payment.<\/p>\n \u201cIt\u2019s free money \u2014 it\u2019s literally free money,\u201d Helali says of certain types of down payment assistance, such as grants.<\/p>\n Anybody who spends a significant amount of time shopping for a home will hear about FHA loans. Down payment assistance programs, by comparison, are treated like classified secrets. Often, neither lenders nor agents will tell borrowers about the programs. As a result, while as many as 87%<\/a> of single-family homes may potentially qualify for down payment assistance, just 15% of borrowers<\/a> apply for assistance.<\/p>\nWhat are down payment assistance programs for FHA loans?<\/h2>\n