Buying a home often requires taking out a high-interest loan, and many potential homeowners are reluctant to purchase a house in the current market. Wyoming down payment assistance programs offer options for buying a home, allowing more people to purchase property.
The Down Payment Loan Program provides monetary assistance with a down payment and closing costs. To participate in this program, homebuyers must take a homebuyer education class and a one-on-one counseling class offered through the Wyoming Community Development Authority. Homebuyers must contribute at least $1,500.00 of their own money and may take a loan of up to $10,000.00. Rates vary depending on the market, but are very reasonable.
Another viable program is the Community Development Block Grant Program. This grant is only available for first-time homebuyers and may only be available in certain targeted Wyoming communities. However, for anyone who qualifies for one these grants, the program functions to provide assistance and encourage individuals and families to purchase a home.
One final program available to Wyoming residents is the Dream Makers Program. Individuals who qualify for this grant are military personnel who may be active, reserve, National Guard, or veterans. The grant program matches contributions on a three-to-one for up to $5,000.00. Since there are maximum income limitations, not all military personnel may qualify for this program.
In addition to these programs, Wyoming may offer down payment assistance programs through its local banks, credit unions, and new programs sponsored by the housing authority. Potential home owners should check with their local government and community partners on a regular basis to learn about these programs and take advantage of down payment assistance programs. Many smaller programs exist in certain parts of Wyoming, especially for individuals who work in public service. These programs allow individuals and families to purchase a home even with limited income and savings.
Wyoming Down Payment Assistance Programs
Down Payment Loan Program Wyoming offers a amortizing second mortgage on a newly purchased home of up to $10,000 strictly for Wyoming down payment and closing cost assistance. home buyers must contribute at least $1,500 and make a monthly payment of at least $25.00. A Wyoming borrower is only eligible for this program with a FICO score of at least 620. The only other qualifying term is a debt to income ratio of 41 percent.
HFA Preferred No Mortgage Insurance This Wyoming down payment program is without mortgage insurance, interest rates are slightly higher than with the HFA Preferred with MI, but monthly payments are still lower because of no MI. Although you may not currently own a residence to be eligible for the HFA Preferred, you do not need to be a first time home buyer. As with the HFA Preferred MI, there are no purchase price limits, yet there are income limits. The 30 year loan will cap at $417,000, and Wyoming down payment assistance can be paired with this loan as well. Similarly to all other programs, 620 is the credit score minimum.
Homebuyer Assistance Program This Wyoming down payment program is a scaled Wyoming down version of the aforementioned Wyoming down payment assistance program. Rather than a maximum $10,000 loan, the home buyer Assistance Program offers a $2,000 loan for Wyoming down payment and closing cost assistance with only a $500 contribution. To be eligible for this loan, a Wyoming borrower must be considered low income per income limit standards, and have at least a 620 credit score. The length of this loan is 30 years and is a deferred loan structure. The original loan taken out must not exceed $135,000.
Regardless of which type of down payment program, you will first need a mortgage. Below are mortgages that require low or no down payments:
No Down Payment Mortgages – mortgages that require no down payment
USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.
Low Down Payment Mortgages – mortgages that require up to 3.5% down payment
FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.
Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.
The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.
More places to find assistance on down payment:
The US Department of Housing and Urban Development (HUD) offers the following programs:
The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.
To learn more about the Good Neighbor Next Door Program, click here.
The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.
Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.
To learn more about Section 184, click here.
Wyoming Housing Agencies
Wyoming housing agencies are your best resource for down payment assistance programs. Through funding from HUD, the purpose of these agencies is to ensure that affordable housing is available for everyone.