The HomeOwnership Center of Greater Dayton, in partnership with the City of Dayton, announced today that it will support first-time homebuyers purchasing in Dayton with up to 20% of the home’s purchase price in the form of down payment and closing cost assistance.
Having funds for a down payment is often the biggest challenge faced by potential homebuyers. Even with special loan programs designed for first-time buyers, upfront costs can run $5,000 – $9,000 – a daunting figure for those saving a modest amount each month toward the goal of purchasing a home.
Addressing this challenge along with offering an incentive to buy in Dayton, the HomeOwnership Center is increasing the amount of assistance available to qualified low-to-moderate income homebuyers to a maximum of twenty percent of the purchase home’s price, up from ten percent. The increased assistance may mean the reduction or elimination of private mortgage insurance costs and save the homebuyer thousands of dollars over the life of the mortgage. The funds are offered as a 0% deferred second mortgage, which is repaid when the property transfers.
“This program makes it possible for first-time homebuyers to invest in their own future rather than paying rent, which is often higher than a mortgage payment in our market,” says Beth Deutscher, executive director of the HomeOwnership Center. “We also want buyers to be sustainable, rather than spending all of their reserves on the purchase and then not being able to handle repairs and other responsibilities of owning a home.”
The program is funded by City of Dayton HOME dollars, a federal allocation from HUD intended to increase affordable housing opportunities at the community level. Buyers participate in classes and coaching from certified advisors at the HomeOwnership Center as part of the program, aimed at empowering them to make good decisions as they move through the process of purchasing a home.
“With the expansion of the Dayton Homebuyer Assistance Program, we are helping to close the affordability gap for low-to-moderate income families. Placing homeownership within reach for our working families leads to stronger families, stronger neighborhoods, and a stronger Dayton,” said Mayor Nan Whaley.