Westchester County Home News: Assistance For Buyers

When it comes time to buy a home, you may need to strap on your thinking cap to come up with some creative ways to boost affordability. This can come in the form of assistance programs, special financing, leasing, and mortgage ideas.

Let's take a moment to explore a few of these options.

The first order of business could be to sit down with your family to see what assistance they'd be happy to offer. You may find that a father or grandmother would be more than happy to co-sign on a loan, or even offer you a loan at low, or zero, percent interest. You could also discuss a shared-appreciation or shared-equity arrangement. This is when a family member buys a portion of the prospective home, and then are able to share in its appreciative value when it is sold.

Next, be sure to look into buyer assistance programs.

The Department of Housing and Urban Development (HUD) has a link you can find on their website, which links to each state and their respective programs. You'll find such things as programs to help fund rural housing, as well as information on Habitat for Humanity.

The Federal Housing Agency (FHA) offers many great options for potential buyers. Since 1934, the FHA has been helping buyers buy with low interest and little down. According to FHA, "your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan." FHA even has financing options for manufactured and mobile homes.

While many downpayment assistance programs are unavailable currently due to a law that went into effect on October 1, 2008, you can still find other very helpful programs. How about the AmeriDream Building Affordable Homes Program – currently developing 106 affordable homes in Southeast Washington, DC. The Woodson Heights development is a $30 million project that is serving as a catalyst for change transforming a blighted neighborhood into a good place to call home and raise families.

As well, be sure to look into the Making Home Affordable program, which can offer you great options if you already own and are looking for ways to keep your home affordable. The Obama Administration’s Making Home Affordable Program includes opportunities to modify or refinance your mortgage to make your monthly payments more affordable. It also includes the Home Affordable Foreclosure Alternatives Program for homeowners who are interested in a short sale or deed-in-lieu of foreclosure.

Be sure to talk to your local real estate agent and mortgage lenders about what options may be right for you. There are many paths to home ownership, and one will be the right one for you.