IA Capital can provide guidance to those interested in exploring downpayment assistance. These programs help homebuyers cover a down payment and sometimes even closing costs. Potential homebuyers who can make a house payment with no difficulty sometimes can’t buy a house because they don’t have the funds required for a down payment and closing costs. Prospective buyers who don’t have the funds to close on a home might consider using a downpayment assistance program.
Downpayment Assistance Explained
Home sellers can help buyers pay closing costs by giving a portion of their proceeds back to the buyer at closing. The amount of seller assistance allowed depends on the buyer’s loan.
Sellers are prohibited from giving homebuyers down payment funds, but gift assistance programs provide a “work around.” When the transaction closes, the downpayment funds are wired from the gift assistance program to the closing agent. The seller has no part in the transfer of funds.