Buying a home is exciting yet stressful at the same time. Purchasing your first home is more than picking out the perfect house, and It’s not just the paperwork; it’s all the other moving parts that are involved. The terminology, the fees and the number of players involved. It is only natural that you push through the process as fast as you can. Though this a novel idea, you should research your options. After all- a home purchase is one of the most significant investments you will ever make in your life. Take some time to understand which programs will work best for you. Remember that old saying knowledge is power. Here are some of the most useful homebuyer programs that you might overlook if you rush the process. By understanding your options, may save you $$$ in the long run. Here are a couple of programs that allow you to buy more home for your money.
For many people, especially you first-time homebuyers, including those who are looking to put the “least amount” down for deposit and closing cost. With FHA (Federal Housing Administration) backing, borrowers can qualify for loans with as little as 3.5% down which makes this loan product very attractive. If you feel this loan program may work for you, go to HUD.gov where you will find a list of FHA lenders near you.
For service men and women, the U.S. Department of Veterans Affairs offers a program that helps veterans and surviving spouses purchase a home. The program is exceptionally desirable, often requiring very little to no down payment or mortgage insurance.
You might be surprised that you don’t have to own a farm to qualify for this option. The U.S. Department of Agriculture has a loan assistance program for home buyers. You would consider this loan option if you are interested in purchasing in a more rural area. This program option targets rural areas and allows 100% financing by offering lenders mortgage guarantees and varies by region.
Are you that buyer that has a vision and always falls in love with that “diamond in the rough.” This loan program is for buyers who enjoy fixer-uppers. This program is another FHA-backed loan program. It looks at the property value, with projecting the after improvements in the consideration. What does it mean for you? It allows you in advance, to borrow funds which needed to complete the project. This funding is included in your (total) mortgage amount.
Good Neighbor Next Door
This loan program is for law enforcement officers, firefighters, EMT’s, and teachers. That’s right, this is a HUD-sponsored program, which allows 50% discounts on the list price of homes located in revitalization areas. Too good to be true? NO! You have to commit to living in the property for at least 36 months.