It isn’t always easy for first-time homebuyers to enter the real estate market: in 2016, only 35 percent of homes on the market were sold to first time buyers — one of the three lowest figures in the last 35 years!
The Prince William County Office of Housing and Community Development wants to make it easier for first-time homebuyers to enter the real estate market. Their First Time Buyers program provides down payment assistance (DPA) between 20% and 30% for eligible buyers, as well as offering 3% towards closing costs.
Are you a first-time buyer looking to purchase a new home in Prince William County? Read on to see if the First Time Buyers program could be the right fit for your situation.
What are the eligibility rules for the First Time Buyers program?
Eligible buyers must work or live in Prince William County, the City of Manassas, or the City of Manassas Park and be looking to purchase a home in one of these areas to qualify for the First Time Buyers program. Additionally, if you earn above a certain annual income, you may not qualify. Income caps are as follows:
The income restrictions for 30% DPA are as follows:
One-person household: $46,380
Two-person household: $52,980
Three-person person: $59,580
Four-person household: $66,180
The income restrictions for a 20% DPA are as follows:
One-person household: $52,550
Two-person household: $60,050
Three-person person: $67,550
Four-person household: $75,050
What do I need in order to participate in the program?
In order to participate in the program, buyers need to secure at least one percent of their home’s purchase price.
Will I have to pay back the DPA?
Yes, but not in the way you might expect. The DPA is given to buyers in the form of a second mortgage; while you won’t have to pay back this second mortgage while you’re living in your home, you will need to repay it once you sell the home that the First Time Buyers program helped you secure. Luckily, the interest rate on money borrowed through the DPA is lower than other loan programs — about one-half a percent less than other loan types.
The Housing and Community Development Office has limited funds that are available on a first-come, first-served basis, so if you qualify for the First Time Buyers program and are looking to purchase a home in our area, get in touch with one of our agents today at Linton Hall Realtors.
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