Resources That Can Help Any First Time Homebuyer
The image source is Pexels.
One thing many people look forward to for years is the moment when they have the ability to buy their own home. However, many still worry they won’t be able to afford a mortgage and other home related expenses. If you have similar worries, you should know there are resources out there designed to help first time home-buyers. Below are some examples.
FHA Loans
Another government organization that helps to provide low cost mortgages to Americans is the Federal Housing Administration or FHA for short. You can be qualified for a FHA mortgage with a lower credit score than you would be by a traditional lender like a bank. You can also obtain one by paying a much smaller down payment than would be the case with a traditional mortgage. Depending on your credit score, the down payment can be as low as 3.5 percent. You can apply for an FHA loan from a lender that has been approved to provide them by the FHA. For example, search for FHA loans in Cincinnati or your particular locale to find an approved lender in your city.
The Good Neighbor Next Door
Another program you should investigate as a potential home-buyer is a program called the Good Neighbor Next Door. This is a program run out of HUD, the United States Department of Housing and Urban Development. This program is designed to give help to public servants like fire fighters, police officers, EMTs and grade school teachers. This program can be used to receive a half off discount on a home that is purchased in an area designated for revitalization by HUD. It can make a house affordable for many people that would otherwise not be able to afford one.
First Time Home Buyer Programs
There are also programs to help assist first time home buyers both at the state and local level that you should investigate. This includes Ohio and most other states and large cities. Some of these programs utilize something known as first time home owner grants. If you don’t know what a grant is, it’s basically funding that does not have to be paid back. Obviously, this would be highly preferable to a home loan that does have to be paid back over an allotted number of years. Other programs offer mortgages with low interest rates. Many of these programs receive assistance through HUD and can be accessed through a counseling agency that works with HUD.
VA Loans
If you were a veteran in a war or other significant combat action performed by the United States military, you can find help through the federal government’s Department of Veterans Affairs. The VA has crafted mortgages specifically for veterans. These loans don’t require a down payment at all. They don’t require a private mortgage insurance policy. They also come with significantly lower interest rates than other mortgages on the market. According to the VA’s website, its home loans are available to service men or women who have served 90 days with 30 consecutive days of active service.
USDA Loans
Another federal government department that helps make homes affordable for Americans is the United States Department of Agriculture. The USDA set up this system of loans specifically for home owners in more rural areas that may have trouble qualifying for a regular mortgage. Similar to an FHA loan or a VA loan, the USDA works with local lenders to help guarantee loans provided through the program. Those that are approved for a USDA loan can see some great benefits. With the use of offered subsidies, this can include interest rates as low as one percent. Loans to help pay for home improvement projects can also be obtained through USDA backed lenders. Even people without credit scores can be approved for a USDA home loan if they are able to provide alternative references for their credit history such as the history of their utility payments.
Conclusion
There are also other programs out there designed to help people buy their first home. If you don’t find a solution right away, don’t give up. You may be able to find the help you need to make buying a home and paying off a mortgage affordable for you and your family.