Inflation is a hot topic right now, thanks to the large increases in the prices of everything from food, gasoline, and basic household items that we are seeing right now. In fact, inflation hit a 31-year high in October, causing all kinds of ripple effects. Like, to cite just one example, Dollar Tree announcing that almost everything on its shelves will only cost $ 1 in the future, permanently. Almost 80% of Americans say inflation is affecting them personally right now, and 57% blame President Biden. The housing market, as you can imagine, is not immune to all of this either. The S&P CoreLogic Case-Shiller indices show that home prices rose 19.8% year-on-year in August. In light of that, here’s one way potential buyers can get help with down payment and other expenses.
Deposit Grant Program – Bank of America
Bank of America Expands Down Payment Assistance Program for Low-Income Home Buyers https://t.co/0JVoPajygn
– Cheryl Batchelor (@ CherylBatchelo3) February 27, 2021
Bank of America offers two home grant programs aimed at low-income borrowers. The two programs are a home payment program and a down payment program, both available in approximately 260 cities and counties. None of these programs require repayment from the borrower, and the bank says it has helped nearly 30,000 people buy homes through these programs.
The down payment program offers a grant equal to 3% of the purchase price of the home, up to $ 10,000. Among the important caveats to know here, according to the bank’s website:
- The borrower has to buy housing in certain geographic areas.
- Income and loan size limits apply.
- And since this is a grant you don’t have to repay, it could trigger a tax problem. A 1099-MISC form will be issued, so the bank encourages borrowers to consult their tax advisor.
The other program here is BofA’s America’s Home Grant program. It offers credit of up to $ 7,500, which the bank says can be used to cover one-time closing costs, like title insurance and registration fees, “or to reduce the rate permanently. of interest “. And these funds do not have to be repaid either.
Monthly mortgage payments for a median priced home are up $ 160 from a year ago, according to an analysis by Realtor.com.
BofA programs support the bank’s pledge, announced earlier this year, of $ 15 billion through 2025, to help more than 60,000 people and families buy homes.
You may have heard horror stories about the housing market by now. Involving a buying frenzy that manifests itself in multiple offers, some cash offers, investors crowding out individual buyers, and much more. The good news? Redfin predicts that the sparkling and overheated market will slow down considerably by the end of next year. Hopefully, allowing more normal buyers and even first-time buyers to join in the action.
More dunning checks?
Borrowers would certainly have more money to spend on things like new home costs if President Biden and the Democrats got what they wanted.
Next month, the Senate is expected to make a final decision on legislation that would extend the payment of stimulus checks by one year. Checks are child tax credit payments that come out monthly.
Right now, the last of those checks arrives on December 15th. The new legislation proposes to extend the monthly child tax credit checks by 12 months. Suddenly, it is as if the payment of December 15 would not be the last.