Easing the Homebuying Hassle - Downpayment Plus Program

Posted on July 30th, 2024

When you’ve never had to purchase a home before, the experience can seem intimidating and expensive. Financially, purchasing may seem out of your reach, making renting seem like the easier option. 

However, owning a home might be a much more realistic possibility than you might think, and less expensive than renting in the long run. Through the help of our knowledgeable and experienced loan officers, as well as some of the services that NuMark offers our members, you could be moving into your dream home sooner than you imagined. 

Owning vs. Renting

While renting is sometimes the easiest path to take in regard to finding a place to live, it’s not always the best choice. With the cost of living continuing to go up, renting can take an immense toll on your finances. So, when debating between renting and owning, it’s important to consider all the pros and cons. 

A big draw towards renting is that there’s more flexibility and freedom. When your lease ends, you can decide to stay there for another term or move somewhere else, or even break your lease early if your job requires you to relocate (with some fees dependent on the lease agreement). You also don’t have to worry about paying for repairs and maintenance, as your landlord would handle them, as opposed to owning your house where you would have to manage repairs on your own. Not to mention, you would have to rent or sell your home in the instance of needing to relocate or move. 

Another draw towards picking renting over owning is, of course, finances. It’s true that when comparing renting a home or apartment and homeownership, purchasing is certainly more expensive upfront, along with ongoing costs. However, despite the high costs upfront, owning a home can actually allow you the ability to grow your wealth over time through building equity. Equity is the part of your home that you own after subtracting any debt you still owe against it. You can calculate your equity by subtracting your loan balance from the market value of your home (e.g. if your home is worth $300,00 and you owe $150,000 in mortgage, you have $150,000 of equity). With renting, the only way that you’re able to build your wealth would primarily be through investments. 

It’s always a good idea to check your area and compare the prices between renting an apartment or home or owning. You might find that the monthly payments are fairly comparable, or that owning a home would be lower monthly payments than renting from a landlord. 

For example, in Will County, the average monthly expense on a $150,000 home 30-Year Fixed at 6.374% would be $1585/month (incl. taxes, insurance and mortgage insurance). The average rent in Will County is around $2,200/month for an apartment, and higher if you rent a home. While your monthly payment on the home you buy can fluctuate depending on property taxes and escrow, it’s more likely to remain somewhat stable than rent because your monthly rent is up to your landlord or management company. 

The Downpayment Plus Program

If you’re a prospective homebuyer and worried about how you’re going to afford a home, don’t worry – NuMark has you covered! We partner with the Federal Home Loan Bank (FHLB) of Chicago to provide homebuyers with cost assistance through the *Downpayment Plus (DPP) program. DPP is a yearly grant that FHLB gives to NuMark to help income-eligible \ homebuyers pay for the downpayment and closing costs on their home. 

“The downpayment is the biggest hurdle for most homebuyers,” says Felipe Amezcua, one of NuMark’s experienced Loan Officers. “Through the Downpayment Plus Program, we’re able to help potential homebuyers with up to $10,000 to use towards their downpayment and closing costs. The great thing is it’s an income-based program and not credit score-driven, so as long as we have a mortgage program for you, we can apply it!” 

To qualify for DPP, you must meet the income eligibility requirements determined by the FHLB. In addition, you must contribute at least $1,000 to the purchase of your home, complete the pre-purchase homebuyer education and counseling, and live in that home as your primary residence. If this program is something that you might be interested in, be sure to talk to one of our experienced loan officers to learn more! 

More Ways to Save

Even if it’s not your first time purchasing a home, finances are always going to be a huge stressor. Aside from the DPP program provided by FLHB, NuMark offers a variety of options for you to start saving up for your downpayment and closing costs on your new home, whether it’s your first or second. 

Having a savings account for your downpayment and closing costs can relieve a lot of financial stress that you might be having about the process of finding your next home. You can check out some of our savings account options on our savings account page. 

Closing Thoughts

Whether it’s your first or your second time purchasing a home, it’s entirely normal to feel nervous and stressed out about the process. There’s a slew of moving parts between lenders and realtors, and the financial aspect only adds on to that feeling of being overwhelmed by the entire experience. NuMark believes everyone deserves a chance to live in the home of their dreams, which is why we work hard to not only provide you with the resources to save up for the expenses, but also the knowledge and guidance so you can make informed decisions and feel more in control of the situation. 

If you’re interested in the DPP program, or other home loan and mortgage options, check out our Mortgage page by clicking below! You can also call the Mortgage Department at (815) 744-7497 to speak with one of our experienced loan officers for more information. 

*Downpayment Plus is a program from the Federal Home Loan Bank of Chicago. Restrictions apply. Please see the Federal Home Loan Bank of Chicago’s website at www.fhlbc.com for complete requirements. “Downpayment Plus” is a registered trademark of the Federal Home Loan Bank of Chicago. Credit Union NMLS #405831.