Having our own home is one of the biggest dreams for everyone in their house. But if you are about to buy a house very first time, down payment could become a hurdle in the way. A person has to pay 20% of the total purchase as a down payment. Hence there are several factors which help to buy a house by assisting the buyer. They are government, state government,and bank. So the government has down payment assistance for the buyer who wants to buy home, same as state government also provide some scheme to help home buyers. Well, down payment is the many which are in the hand of the buyer, so in India, you should have 20% of the total purchase to buy a house for you. Recently,RBI has declared that bank and non- bank financial institution can provide only 80% to the buyer, 20% will be arranged by the buyers
Let’s prepare the base for down payment
If a person is planning to buy a home he/she should take care of these following things.
1) The amount of down payment
2) The limit or time to pay the down payment
3) The condition of the property in the market
4) Thinking about the additional charges like registration of Title Company, pest inspection charge, closing cost and many more
The bud of down payment
to take a home loan in India is a big deal, as RBI has announced that down payment belongs to the buyer should be 20% of the purchase price. Defiantly it will take approx 10 years to save for down payment for a middle-class person. Hence right here we are going to discuss how to do assistance with down payment below:-
1) First of all, the buyer will have to self-motivated, that’s why he should start earning from the beginning
2) Managerial quality of a person plays a vital role because he will have to understand how to save out of expenses.
3) You can go for a short-term loan in order to fulfill the amount of down payment.
4) Apart from this, there is a program from the government called as NHF which is a multi-state DPA which closing cost at 5% of the purchase price.
The down payment assistance program processed by the state as well as local authority related to housing. It can be accessed by the nonprofit institution or many times by the lenders.There are some criteria under this assistance and if the borrowers qualify they give set of the amount, in order to cover their down payment or closing cost at a very minimal price.Hence government program regarding assistance with down payment along with state government program makes it easy for the home buyer to obtain money for their down payment. Because of this 20%, down payment could be reduced to 5% of down payment.