How to buy a home - First time home buyer programs
First Time Home Buyer? Incredible Programs You Don't Want To Miss You might be dreaming of having your first home but feel defeated by the process or what it entails, costs... Well, folks, have I got news for you. If you're a first time home buyer, you may qualify for special programs that make homeownership more attainable...and affordable...than you ever dreamed. Well, in this article, we are going to discuss one of the best and reliable first time home buyer programs that you are likely to come across and that is intended to fulfill your dream of owning a home. A new deposit can be a significant hurdle for many new home buyers trying to make the jump to home ownership. If you're stuck paying high rent prices in a competitive market, being able to save 10-20% for a down payment on a house can feel impossible. But don't despair!
- U.S. Department of Housing and Urban Development (HUD) by state
- Home buying assistance - Learn about government programs that make it easier to purchase a home.
First time home buyer programs that will help:
FHA Loans: Loans that are guaranteed by the Federal Housing Administration, which generally let you put as little as 3.5% down. This government run program is for lower credit scores and first time buyers.
USDA Loans - Perfect for rural buying. For qualifying properties and buyers, they require no down payment. That is true, 0% down!!!!
VA Loans: Are you a veteran or member of the armed services? If this is you, then you would be eligible for a VA loan which also allows 0% down. Not only is it an amazing way to say thank you for your service.
Down Payment Assistance: There are many states, counties and cities offering down payment assistance for first time home buyers. There are government and other programs that offer to give you a hand by providing grants or low-interest loans that will pay for a portion or all your down payment and closing costs. And the best part? It is a grant and typically does not need to be paid back.
But more than the down payment. Some first time home buyers can save even more throughout the life of the loan with programs such as:
Mortgage Credit Certificates: With MCCs you can claim a tax credit for a percentage of your mortgage interest, which can save you thousands per year. This means you take home more pay and consequently lower monthly mortgage payments.
Energy Efficient Mortgages: You may qualify for an EEM if you are buying a new energy-efficient home or you have plans to do so. By adding it into your mortgage, you're able to elongate the payments over the life of your mortgage, paying it down gradually along the way.
Fannie Mae HomeReady & Freddie Mac Home Possible: These special conventional loan programs offer low down payments, reduced mortgage rates with no PMI, and down payment assistance.
First-Time Buyer State Programs: There most likely are some extra credit programs in your state for first-time house purchasers that offer benefits like free tax credits, 0% interest loans, and also gives that are forgotten. Check out the programs that your state has are available.
Feeling excited yet? You should be! The reality is, these first time home buyer programs can be complete game-changers when it comes to transitioning your dream of homeownership into reality.
Do not worry if you are not sure about if you meet any of the above - an excellent loan officer will walk you through all the options and determine the program that is best for you. And if you have been sitting and waiting on the housing market - then it is time to get off the pot! You have absolutely nothing to lose and a lot to gain with these amazing programs. Just think of the pride you are going to feel once you own a place of your own. The security, the joy!
If you are a first time buyer, you should receive as much help and support as you possibly can. So do not be afraid or let the lack of know-how set you back on taking action towards your end goal of homeownership. Learn all about these wonderful programs, find a great loan officer and a fab agent and get ready to put down the welcome mat at your first home. Homeownership is within reach with a little prep and planning of course. The bottom line is, breathe, research and get excited - buying your first home is a journey you are just starting!
