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First-time homebuyers program – Your options


First-time-home-buyers-program-Your-options

Sometimes buying a home becomes so hard that it can be compared to a hurdle race in the Olympics. The paperwork is complex, so as the terminology and the fees structure along with the parties involved in the process. It’s natural to agree to anything, sign everything and just run through the procedure as quick as possible. But while that mentality helps you to get a success in a downhill skiing, it won’t help you to be a winner in life’s uphill financial battle.

Here are some of the most beneficial homebuyer programs that would help you to ease up the process. They may save some big dollars from your wallet.

1. FHA Loans

It seems the best go-to program for first-time homebuyers and people having..let’s just say a shaky credit history. The Federal Housing Administration (FHA) provide you guaranteed support for a part of your home loans. This support will help lenders to loosen the standards of home loan criteria.

FHA backs up borrowers, with as low as 3.5% down payment, to qualify for a home loan. You can find a list of nearest FHA lenders near at HUD.gov.

2. VA loans

The U.S. Department of Veterans Affairs a.k.a VA provides financial support to the veterans, existing service members and surviving spouses to get their own dream homes.

It’s a very generous program rendering zero down payment or mortgage insurance to those people. But the approval process of a VA loan is a little time consuming, just like a specialized military operation.

3. USDA

The U.S. Department of Agriculture supported below average homebuyers with a unique assistance program, even if they’re not living in a firm to become eligible.
The program primarily targets rural areas and provide 100% financing with reduced mortgage insurance premiums. But borrowers might face income limitations while opting this housing loan and it may vary region by region.

4. Home upgrade programs

a. The Energy Efficient Mortgage (EEM) program helps the borrower to get their own energy-saving options enabled home or a home’s environment-friendly feature up gradation. Apart from that, if you qualify for a mortgage, you can also include the EEM benefit with it.

You won’t require a new appraisal of it and it also doesn't have any impact on your down payment. The EEM program enables the lender to extend the loan with flexibility so that you can grab the benefits of energy efficient improvements in your new home.

b. Another option would be HUD 203(k) loans, designed for borrowers who want to handle a fixer-upper. This special loan is backed by the federal government and allows you to borrow the money to buy a damaged or older home as part of your primary mortgage.

5. Good Neighbor Next Door program

Previously catering only to teachers, this program has now included firefighters, emergency medical officers, and law enforcement personnels, as well; hence it’s given the “Good Neighbor” name.

This program is backed by HUD and allows borrowers 50% discount on the listed home price. But to get the benefits of this program, a borrower must live in the property (in a revitalization area) for minimum 36 months.

6. Dollar homes

HUD claims to offer $1 single-family homes that have been acquired by the FHA through foreclosures. Practically, several properties in the Dollar Home category are found to be listed previously for more than $15,000 to $20,000. So, borrowers must do proper research and shop carefully.

7. Fannie Mae and Freddie Mac

Fannie Mae and Freddie Mac are the main backbones of the US mortgage industry. These government-sanctioned companies work with local lenders and offer many lucrative mortgage options, such as 3% down payments.

Buying the first home is a dream come true for every individual. But many of us can’t go for it due to a shortage of funds and lack of proper knowledge. So, the above-mentioned resources may become a breath of fresh air for the borrowers eagerly waiting to own a new home.

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