FHA Down Payment Assistance Grants for 2024 (2024)

FAQs

How much is a down payment in 2024? ›

What's normal for a down payment? As of early 2024, the typical down payment is 13.6%. First-time homebuyers typically put down a lower amount, around 8%, while repeat buyers usually put down more, around 19%.

The Michigan State Housing Development Authority (MSHDA) offers Down Payment Assistance (DPA) to specifically help repeat homebuyers purchase a home. The assistance is provided with a zero-interest, non-amortizing loan with no monthly payments.

The California Dream For All Shared Appreciation Loan is a down payment assistance program for first-time homebuyers to be used in conjunction with the Dream For All Conventional first mortgage for down payment and/or closing costs.

An additional $220 million has been allocated for the Dream for All program in the 2023-24 State Budget. This next round of funding will target first-generation homebuyers, with an equitable distribution to different regions of the state, and will prioritize homebuyers in the lower tiers of income eligibility.

Mortgage rates are expected to continue trending down through 2024 and into 2025. The Mortgage Bankers Association thinks that 30-year mortgage rates could fall to 5.9% in 2025.

The down payment needed for a $300,000 house can range from 3% to 20% of the purchase price, which means you'd need to save between $9,000 and $60,000. If you get a conventional loan, that is. You'll need $10,500, or 3.5% of the home price, with a FHA loan.

The MI 10k DPA (Down Payment Assistance) Program provides eligible first-time homebuyers in Michigan with up to $10,000 in assistance towards their down payment and closing costs. With MSHDA's support, first-time homebuyers in Michigan can achieve their dream of owning a home with greater ease and confidence.

The program provides qualifying residents grants up to $25,000 for a down payment, prepaid including interest rate buy down, closing costs, and principal reduction in conjunction with purchasing a home using a purchase mortgage or a purchase renovation mortgage.

The CalHFA FHA Program is an FHA-insured loan featuring a CalHFA 30 year fixed interest rate first mortgage. Review the sections below to find out more about the CalHFA FHA program.

By definition, a FACOP stands for Federal Assistance Cash-Out Program. Some lenders use the term FACOP refi to refer to an FHA cash-out refinance and use these two interchangeably. One thing to note on the FACOP refi is to be cautious of recent online scams offering free money to applicants.

How much down payment for a 500k house? ›

DOWN PAYMENT AND CLOSING COSTS

FHA loans require a down payment of 3.5%. For a $500,000 home, this amounts to $17,500. Closing costs should also be taken into consideration. These include various fees and taxes and generally fall between 2% and 2.25% of the listing price.

Eligibility. One borrower must be a first-generation homebuyer. All borrowers must be first-time homebuyers. Income must meet CalHFA Income Limits for the county you are purchasing in.

A CalHFA first mortgage generally has a turnaround time at CalHFA of 1-2 business days for compliance review. CalHFA loans have straightforward paperwork, quick processing and dedicated customer service. Many of CalHFA's preferred loan officers have closed CalHFA loans within 30 days.

While you can make payments on the loan to reduce accrued interest, or principal, no payments are required until the loan is called due, at maturity of the first, sale of the property, transfer of title, a refinance or assumption of the first.

Cost-of-living adjustments

The COLA dipped to 3.2 percent in 2024 as price pressures cooled from 8.7 percent in 2023 — the highest in more than 40 years as inflation soared.

Your minimum down payment for a $400K house with a pure conventional loan can be $80,000. However, read about piggyback loans, which may get you many of the advantages of a 20% down payment if you've only saved 10%.

To purchase a $200,000 house, you need a down payment of at least $40,000 (20% of the home price) to avoid PMI on a conventional mortgage. If you're a first-time home buyer, you could save a smaller down payment of $10,000–20,000 (5–10%).