Down Payment Assistance in San Antonio: An Overview
Buying a home can be an exciting endeavor, but saving up for a down payment can hinder the process if you’re on a tight budget. If you want to buy a home in San Antonio with an FHA loan, you can get help through one of the many down payment assistance programs offered by Texas and its local governments. Receiving a down payment assistance grant or loan can expedite the home buying process.
Here’s what you need to know about receiving assistance with your down payment in Texas.
Get Down Payment Assistance for Your San Antonio FHA Mortgage
If you want to live in San Antonio, there are grants and loans available to help you pay your down payment.
If you fall within a specific demographic, you may be able to find programs specific to you. The Homes for Texas Heroes program for police officers and first responders is just one example of a down payment assistance program that is available for a specific group of people.
The down payment assistance programs available to you depend on the area in which you want to buy a home. Down payment assistance programs available in Texas include the Home Star Program, the Home Ownership Across Texas Program, and the 5 Star Texas Advantage Program to name a few.
San Antonio Down Payment Assistance Types
Down payment assistance from Texas, the city of San Antonio, and its counties is available as a grant or a loan.
If you receive a down payment assistance grant, you can think of it as free money. You do not have to pay it back.
There are three types of down payment assistance loans. There are loans that you pay with your monthly mortgage payments, loans that have deferred payments, and loans that are forgiven. Different programs offer different types of loans, so make sure you know what you’re signing up for.
Am I Able to Qualify for Down Payment Assistance?
To qualify for down payment assistance, all you have to do is meet the requirements for the specific program you are applying for.
Typically, down payment assistance goes to low-income families or individuals who fall into a target group. Most down payment assistance programs are for first-time homebuyers who wish to purchase a primary residence with their FHA loan.
FHA Loan Requirements
When you are taking out an FHA loan, you must pay a certain down payment amount based on your credit score.
While you can get an FHA loan with a score of 500, you must put ten percent down on the loan. Saving up ten percent can be time-consuming, so it may be easier to pay down debt and boost your credit.
Once you have a 580-credit score, you only have to put 3.5% down and your down payment assistance will go further.
San Antonio FHA Home Loan Limits
While FHA loan limits vary by county, the general borrowing limit for a single-family property is $356,362. In a high-cost location, FHA borrowers can take out loans up to $822,375.
How to Choose an FHA Lender in San Antonio
When you are selecting an FHA lender, it’s all about who can meet your needs at the lowest price.
Some lenders are picky about how they allow borrowers to use their down payment assistance towards their loans. If you are planning on using down payment assistance, be sure to talk to lenders first to see what their stipulations are.
You should also ask them about their fees and be ready to negotiate lower prices. You must also look at the annual percentage rate to ensure you won’t be paying sky-high interest on your FHA loan.
How to Buy an FHA Home with Down Payment Assistance
Once you’ve qualified for down payment assistance, you can put your FHA loan to work and start shopping for homes.
Once you’ve found a property you’d like to purchase, it must pass through an appraisal so that the Federal Housing Agency can make sure it meets their standards.
As long as the price falls within the limits and the home passes the appraisal, you should be well on your way to settlement and home ownership.