Saving to buy a home, whether it is a first home or the third, can be a difficult task.  For many potential home buyers, not having sufficient money to cover the closingi costsi and down paymenti is the difference between renting and owning a home.  However, many non-profit and public charity organizations have been created to assist first time home buyers, low to moderate income families, and general home buyers with the purchase of a home.

Many of the local down paymenti assistance programs are ran by the housing authorities in that state. Below is a listing of state housing authorities. If you find any of the following information to be incorrect or out dated, please let us know.

Many local and state agencies run bondi programs to generate funds to help individuals and families with a down paymenti. Contrary to public thinking, these bond issues are not a type of welfare. The government knows that it can be tough to buy that first home, especially on a limited income.

To be considered for a low down paymenti loan, you generally need to have:

• Sufficient income to support the monthly mortgagei payment
• Enough cash to cover the down payment
• Sufficient cash to cover normal closingi costsi and related expenses (explained below)
• A good crediti background that indicates your payment history or "willingness to pay"
• Sufficient appraisali value, which shows the house is at least equal to the purchase pricei
• In some instances, a cash reserve equivalent to two monthly mortgage payments

Closing costs, or settlement costs, are paid when the home buyer and the seller meet to exchange the necessary papers for the house to be legally transferred. On the average, closing costs run approximately 2% to 3% of the house price. This percentage may vary, depending on where you live.

There are national non-profit organizations dedicated to assisting home buyers with their down paymenti and closingi costsi. Down payment grants for first time home buyers are also available.

Buyers can receive a free gift under these programs. Gift amounts vary with each program but are generally available in amounts of 3% with some programs, all the way up to $22,500 with others. Buyers never have to repay these grants for down payment.