Does the state offer grants or loans for downpayment assistance?
Homeownership is often out of reach for low- and moderate-income households because they lack the necessary, often substantial, downpayment. Direct grants and “soft second” mortgages (which are subsidized and/or forgivable loans to help boost a borrower’s equity) can bridge the financing gap for first-time homebuyers. • Does the state provide funding for homeownership counseling? Educating first-time homebuyers on the purchase process and helping them make informed decisions about their housing investment is one important way to ensure a successful transaction and decrease the likelihood of foreclosure. Homeownership counseling is correlated with lower mortgage payment default rates, and has a significant impact on first-time and low- and moderate-income homebuyers. States should fund homeownership education and counseling for prospective homebuyers and current homeowners. • Does the state offer programs specifically designed to help transition low-income renters to homeownership? Sect
