Most individuals wrongly assume that you need a 20% down payment to buy a house. This used to be true, and there are still traditional mortgage lenders out there who will insist on 20%. However, times have since changed for the better.
It is now possible to pay a down payment of as little as 3.5%. Not only that, but you can also receive assistance for the amount required.
North Bay, WI down payment assistance (DPA) programs designed to help people make the initial payment on their future home. As long as certain criteria are fulfilled, even those on low incomes can now purchase a home to live in. Contact Compass Mortgage today and let us walk you through the mortgage loan process.
Overall, four DPA programs are available. Depending on your area, all of them may not be offered:
Loans can be interest-based, with the interest percentage lower or higher than your mortgage rate. That said, the most common type of DPA is a grant, which never has to be repaid, though they are not offered in the state of Wisconsin.
Any interest rate applied is determined by your circumstances and the type of DPA taken.
The qualifying criteria will vary slightly according to your area. There are several defining criteria that are required no matter where you live, as long as:
A targeted area is somewhere that has been federally identified as needing economic growth. Therefore, homebuyers are encouraged to purchase in these areas to stimulate the economy. For this reason, it is generally easier to obtain DPA if you are looking to move to such an area.
The amount of DPA you receive in the North Bay, WI area is generally dependent on the area you are looking to buy in. Ranging from zero, to tens of thousands of dollars, many factors play into how much you will receive, and whether or not you ever have to pay it back.
You can often use your DPA loan to pay for closing costs as well. You will be told whether you can do this when you apply.
You can only obtain a North Bay down payment assistance loan if you obtain a mortgage from an approved lender, such as Compass Mortgage. Furthermore, you may be obliged to take out a specific type of mortgage, although the most common mortgage types are generally accepted:
North Bay, WI home loan down payment assistance, unfortunately, does not include grants. If you intend to buy a home in this state, your options are limited. The Wisconsin Housing and Economic Development Authority (WHEDA) has a program called “Capital Access:”
There is also something called the Easy Close DPA program. This provides up to 6% of your primary mortgage amount as a ten-year loan at a fixed rate. This is repayable monthly.
If you would like to make an application for a DPA program in North Bay, or understand more about how you qualify, it is best to speak to an approved mortgage lender. They will be able to give you specific details surrounding your personal circumstances.
For the North Bay, WI area, contact our team at Compass Mortgage. We have experts in the Wisconsin home buying market who can advise you on the best type of mortgage and which assistance you qualify for. You may find that a previously out-of-reach home now fits within your budget. DPAs are designed to make home-buying more affordable, so it is important to take advantage of them.