Closing the Homeownership Gap: A Comprehensive Approach to Equitable Housing for African Americans

Thetraditional rule of thumb is that you should put down 20 percent of the cost ofthe house if you decide to become a homeowner. Unfortunately, the thought ofsaving 20 percent of the price of a home for a down payment can be daunting forpeople who are trying to buy a house for the first time. If you purchase ahouse worth $250,000, this means that you would have to save up $50,000 to putdown. Fortunately, there are multiple down payment assistance programs that canmake it easier for people to afford a home. 

TheTraditional First-Time Homebuyer Assistance Programs

If youare purchasing a home for the first time, you might be able to purchase a housefor as little as 3.5 percent down. This comes in the form of an FHA loan. Eventhough there is a chance you might be asked to pay mortgage insurance premium(MIP), the idea of putting 3.5 percent down immediately makes a house look moreaffordable. 

Programsfor Repeat Homebuyers

Eventhough there are plenty of programs available for first-time home buyers, thereare options available for repeat home buyers as well. For example, between 35and 40 percent of all down payment assistance programs have been designed forrepeat home buyers. This means that regardless of where you are at on yourjourney, there might be programs that can make it easier for you to afford ahome. 

ProgramsAre Available for Public Servants

If youwork in a service profession, there might be programs specifically designed tohelp you afford a home. For example, there is a specific program called TeacherNext Door that makes it easier for teachers to afford a home. If you are afirst responder, veteran, or active-duty soldier, there are specific programsdesigned to make it easier for you to afford a home as well.

ExploreAll Options Available

Ultimately, these are just a few of the manyexamples of programs that are available that can make it easier for you toafford a home. Even if you do not have the money to put down 20 percent, thereare programs that could make it easier for you to become a homeowner.