Many potential home owners are discouraged from purchasing their first home because of the financial requirements that many lenders require. To help, many Federal and Local Government Agencies, non-profit organizations and national and local mortgage lenders offer "Mortgage Assistance Programs" These programs may include the following:

• Down Payment Assistance Programs - provide funds needed to close a home purchase. They contribute additional funds that can be used to meets a buyer's minimum required down payment or pay mortgage closing costs. Some of these programs are outright grants that do not require the home owner to repay them. Others include unsecured loans that need only be repaid when the home is sold or if the borrower moves. Other programs offer deferred payment second mortgages or laons with an interest below the market, while others offer a combination of these programs.

• Mortgage Credit Certificates - assist borrowers with their monthly payments. Under IRS Tax Codes, home mortgage interest is tax deductible on income tax returns. For borrowers meeting certain income limitations, the IRS will allow lower withholding tzx deductions from the borrower's paycheck. This will increase the borrower's take home pay which will allow the borrower to qualify for a mortgage.

• Subsidized Interest Rate Loans - are offered by many states, counties and cities. The local government will issue municipal bonds which are exempt from many taxes. This allows the bonds to have a lower interest rate. This lower interest rate is passed on to provide funds from home mortgages for thoses borrowers that qualify.

    
Most of the Mortgage Assistance programs are administered by local government agencies, but the loan application and process are done by local mortgage professionals including mortgage companies and mortgage brokers. Information can be obtained by calling the local city housing authority or mayor's or city manager's office. Most phone directories have a "blue page" section listing community services such as housing or financial assistance. Subsidized interest rate loans are usually administered by state housing finance agencies and offered through mortgage lenders. Additional housing assistance inforemation can be obtained from the nearest U.S. Dept of Housing and Urban Development (HUD), Federal Housing Administration (FHA) office, listed under U.S. Government in the phone directory of those cities in which a HUD or FHA office is located.
    
Some of the sources for Mortgage Assistance Programs on the Internet include: