A and N Mortgage company’s Home Run assistance program is designed to help homebuyers meet their down payment commitment.
For most people, it’s the greatest obstacle to homeownership: Finding the money to place a down payment on a home. In fact, down payments usually rank above the need to prequalify for a mortgage as a barrier to entry into the housing market. Fortunately, there is no shortage of programs that give first-time homebuyers a helping hand.
Expectations Meet Reality
Usually, our expectations exceed reality. When it comes to down payments, the opposite may be true. Ask the average American, and they’ll tell you that an initial down payment on a home requires at least 15 percent of the total property cost. According to a survey conducted by Zelman and Associates, 39 percent of people think they would never get away with less than 15 percent. Respondents to a recent Wells Fargo survey echo those sentiments—36 percent believe a 20 percent down payment is non-negotiable.
The facts don’t support such a pessimistic outlook. Recent statistics, for example, reveal that 40 percent of new homeowners manage to make down payments of less than 10 percent of the purchase price. Of course, homebuyers must have at least some cash on hand. With the average cost of a home totaling $304,500 as of November 2016, the typical down payment can set you back anywhere from $10,657.50 (3.5 percent) to $60,900 (20 percent).
That being said, purchasing a home is often easier than many expect. The reason for such flexibility is the existence of homeownership initiatives across the country. In the end, how much you’ll have to pay depends on which assistance programs are available to you, which, in turn, depends on your local mortgage lender and your particular qualifications.
Down Payment Assistance in the Chicago Area
- 80 percent of your closing costs*
- up to 5 percent of the loan amount*
In real terms, that means that if you receive a $300,000 loan and pay $5,000 in closing costs, the A and N Mortgage Home Run Grant would cover $4,000 out of the $5,000. Furthermore, the Closing Costs Grant offers immediate forgiveness on a first come, first serve basis.The Home Run program also includes a matching down payment scheme** that offers:
- a dollar-for-dollar match of the borrower’s own down payment
- up to 5% of the home’s appraised value (for a maximum of $8,000)
- a 5-year forgivable grant with no monthly payment
Like many assistance programs around the country, the Home Run initiative makes owning a home in the Chicago area a more feasible option for a greater number of people. To find out if you’re eligible for A and N Mortgage’s Home Run Down Payment Assistance program, call us at 773-305-LOAN.
* prepaid items not included
**available for purchases only