Many people looking to buy homes are finding it challenging to come up with the down payment needed to secure financing. Luckily, programs are available that will contribute funds towards your purchase, but with so many options out there, it can be difficult to choose. Here are a couple of tips to help you pick the right program for you.

Consider Your Long-Term Goals

Every down payment assistance program has qualification requirements for the money its offering. However, some loans also require applicants to make additional commitments to maintain their eligibility for the money or obtain more benefits.

For example, some programs will loan you money for your down payment but the loan will be forgiven—meaning you don't have to repay it—if you agree to live in your home for a minimum number of years. Moving out before the agreed-upon date, though, means you'll have to repay the funds.

Like so many issues related to purchasing a home, applying for the right down payment assistance program depends on your long-term needs and goals. Grants and deferred loans are best for people who plan on only living in the house for a few years before moving on, while folks purchasing their forever homes should also look into forgivable loans.

A mortgage expert can discuss your specific needs and connect you to the right down payment assistance programs that fit.

Be Realistic About Your Finances

As noted previously, some down payment assistance programs are actually loans that must be repaid, which can increase your mortgage payment depending on the terms. Thus, your finances will play a critical role in what type of assistance you should be looking for.

Deferred loans, for example, don't have to be repaid until you sell your house or refinance the mortgage. So, this type of down payment assistance is good for people who are working with a limited budget as you'll only have to worry about paying for the primary mortgage at first.

It's important to base your decision on your finances as they currently stand. Even though you may be anticipating better circumstances in the future—such as a raise or promotion at work—there's no guarantee those dreams will come to fruition. In fact, to properly prepare, consider the worst-case scenario—you suffer a job loss—and choose the option that will be easiest to handle.

For more information about down payment assistance programs, contact a lender in your local area.