A couple of questions I get asked a lot from the buyers my team and I work with are “Do you have experience with down payment assistance?” and “Is it true you can really purchase a home with little-to-no money out of pocket?”
The answer to both is absolutely yes!
There are two different types of down payment assistance products offered to buyers here in Denver.The first is a down payment grant that you never have to repay, which is definitely my favorite. The second is a mortgage known as a “silent second.”
With the silent second product, the down payment assistance company gives you the money for your down payment, you never need to make monthly payments on it, and it’s on title as a second mortgage. When you sell the home in the future, though, you’ll need to pay off that amount. Not all lenders have access to these down payment assistance programs, so make sure you work with someone you trust and has access to all the different options we have in Denver.
When you’re working with a down payment assistance product, you’ll typically need 45 to 50 days to close because you have two sets of underwriting to go through. You have to first get underwritten from your local lender and then get underwritten from your down payment assistance company prior to getting clear to close.
How well do these programs work? One of our buyers recently bought a $302,000 house with only $1,500 out of pocket. These kinds of programs are real—you just need to work with a professional who knows how to get to them and how to leverage them to help you compete in a multiple offer situation.
If you or anyone you know is looking to purchase a home with little-to-no money out of pocket, please reach out to us so we can evaluate your situation and help you make the best decision possible. We look forward to hearing from you.