No Down Payment Mortgage First Time Home Buyer

With all the problems in terms of the recession, falling house prices and banks being bailed out by the government, as a first time buyer you may feel that there is no way that you'll ever be able to afford your own home. Finding the down payment is one of the biggest hurdles but it doesn't have to be this way.

This is because you might be able to take advantage of one of the Down Payment Assistance Programs (DAPS) . There are different programs that you can make use of if you are a first time buyer and need the down payment and also the closing costs that are needed by the FHA loan program.

You will need to do some research to find out which one applies to you. The 501 (c) (3) non-profit down payment assistance programs basically involves the home seller. The Neighborhood Gold down payment assistance allows you to receive between 3 and 10 percent which can go towards the downpayment and closing costs but it really depends on the seller. You also need to have negotiated the deal with the seller before you make an offer on the property.

Then there is the State, County, and City backed Down Payment Assistance programs which involve a second mortgage. The second mortgage is referred to as being "silent" which means that you don't need to make repayments at first and there are some programs that can allow for forgiveness of the loan after a certain period of time as long as you are still living in the home. If you live in California then you can make use of California Housing Down Payment Assistance Program (CHDAP ) by taking out an FHA loan with an additional silent loan which equated to 3% of the total amount. There are a number of different qualifications required however the good thing is that there is no seller participation required. You can even combine the CHDAP with a sellers assistance of a maximum of 6 percent. So if you are a first time buyer with no money to pay for the deposit and closing costs this can work out very well.

It's always a good idea to talk with a mortgage advisor who knows about mortgages for first time buyers and how you can go about getting the down payment that's required. Unfortunately, the mortgage industry is constantly changing and programs that were available yesterday might not be available today due to lack of money and such like. It's so difficult to keep up with all the changes which is why a professional is really needed to help you out.