 TITLE: How to Get Down Payment Assistance CONTENT: Buying a home is often the largest purchase a person will make in their lives. Unless you're one of the lucky few who can buy a home outright with no need for a mortgage loan, you'll need to have at least some money on hand for a down payment. A down payment shows lenders you are committed to the purchase by putting your own money on the line.\nLenders may require a certain amount for a down payment, which is usually a percentage of the purchase price. For example, if you were buying a home that cost $200,000 and your lender required you to put 10% down, the down payment would be $20,000. Even utilizing government-backed mortgages intended to help low-income or first-time homeowners, you may still be required to put some money down (such as 3.5% for an FHA loan). The good news is there are many programs designed to help potential homeowners cover the down payment.\nAlmost all down payment assistance programs are provided through the federal government at the state level. Sometimes local nonprofits may partner with the government to provide homebuying education or distribute money for down payment help; however, the funding still flows down from the federal government. There are other institutions that provide down payment assistance too. (More on that later.)\nDown payment assistance programs fall into four general categories:\n*   **Grants**: This is money that you don't have to pay back. If you can get a grant to cover your down payment, that's the most ideal scenario.\n*   **Deferred payment loans:** This is a second mortgage you can take out to cover the down payment costs on the home you're purchasing. It's called a deferred payment loan because you don't have to pay back the money unless you move, sell or refinance your first loan. That said, these loans are never forgiven.\n*   **Low-interest loans:** A low-interest loan is also a second mortgage. The difference between this and a deferred payment loan is that you have to start making monthly payments on this loan right away, usually at the same time you make your regular monthly mortgage payments.\n*   **Forgivable loans:** A forgivable loan is another type of second mortgage. You won't have to pay this one back unless you move before your loan term ends. These loans usually come with an interest rate of 0%.\nOnce you find a down payment assistance program you think you may qualify for, you'll need to find out if your lender works with the program (or seek out other lenders that do). END