11/05/2025
Thinking about using DOWN PAYMENT ASSISTANCE?
I wanted to take a moment to break down the upfront costs that come with purchasing a home and how down payment assistance works, so you feel prepared and confident every step of the way.
Down Payment Assistance
The good news is that there are programs available to help cover your down payment, which is typically a large portion of what buyers pay upfront. These programs are designed to make homeownership more accessible especially for first-time buyers like yourself.
However, it’s important to understand that while the program may cover your down payment, there are still other upfront costs you’ll need to plan for. Let me walk you through them.
Upfront Costs to Expect
Earnest Money Deposit➖
This is a deposit made once your offer is accepted, typically ranging from $1,000 to 1% of the purchase price.
It shows the seller you’re serious and is later applied toward your closing costs or down payment.
Home Inspection➖
Highly recommended to protect your investment.
Paid out-of-pocket shortly after your offer is accepted.
Typically costs $400–$600, depending on the size and location of the home.
Appraisal Fee ➖
Required by your lender to determine the home’s value.
Usually ranges from $500–$700.
This is also an upfront cost not covered by assistance programs.
Reserves (Bank Requirements) ➖
Most lenders want to see that you have 2–3 months’ worth of mortgage payments in savings after closing.
This includes principal, interest, taxes, and insurance (PITI).
These funds aren’t spent but must be available in your account as a financial cushion.
Seller Credits (Negotiable) ➕
We can negotiate for the seller to help cover a portion of your closing costs.
While helpful, it’s not guaranteed, so we should prepare as if you’ll need to cover this yourself.
Closing costs typically are 3% of the purchase price
While down payment assistance is a powerful tool to help you get started, you’ll still need to budget for some upfront costs and savings. I know it may seem like a lot, but you don’t have to do this alone. My job is to walk you through every step, help you plan ahead, and connect you with the right resources to make this process as smooth and stress-free as possible. 🤝
Let me know if you’d like to hop on a quick call to review this together or if you have any questions. I’m here for you!
Vincent A. Young, BS, CREN, CELA, CBDA, CPRE™️
Bennett Realty Solutions
®️MD-DC-VA
📲202-553-1173
