Buying a home for the first time in your life feels amazing. There are some government and non-government aid programs to help you get your first home for an affordable price. Some of the programs listed below don’t even ask you for a down payment. Isn’t that amazing?
Here are the 5 best first-time home buyer programs.
1) FHA Home Loan Program
FHA is one of the best first time home buyer program issued by an FHA-approved lender. FHA(Federal Housing Administration) is a government organization which ensures the loan so that people coming from a low financial class can afford to buy a home with a low down payment.
To get 3.5 % down payment program, you will need a credit score greater than 580. If your FICO score is below that then you will have to pay a 10 % down payment. It is not that difficult to main a FICO score around 580. This is the reason why the FHA home loan program is so popular amongst first-time home buyers in America.
2) VA Loans
VA loans are mortgages offered by private lenders to military veterans and their spouses. VA(Veterans Administration) is established by the United States Department of Veterans Affairs. Obviously, opting for a VA loan is beneficial for a war veteran or military personnel. The program is tailor-made for them. The down payment is not mandatory unless you buy a house by paying more than it’s actual market value. Also, there are other benefits such as property tax reductions.
3) HUD’s Dollar Homes initiative
HUD’s Dollar Homes is an initiative by the U.S. Department of Housing and Urban Development. This program helps the U.S. government to provide affordable housing to low to moderate income families. They offer homes single-family homes for a mere $1. These homes are acquired by the FHA on its foreclosure. That means FHA took possession of the home because the previous homeowner could not make house payments.
4) USDA Loans
USDA(United States Department of Agriculture) loans are not just for farmers and agriculture professionals. It is one of the first time home buyer programs that benefit anyone looking to buy a home in a rural area. This helps the growth and development of rural areas in America. The biggest benefit of buying a house with the USDA loan program is that it does not need you to pay a down payment. But, they do charge for mortgage insurance.
5) Good Neighbor Next Door initiative
Good Neighbor Next Door initiative is a first-time home buyer program that provides mortgage loans to people working as teachers, firefighters, law professionals, and EMT’s. You can get up to 50 percent discount on homes under HUD. But, there is an eligibility criterion to avail of this benefit. One such condition is that you have to live the house you buy with? Good Neighbor Next Door initiative.?
To get the best home for the best price, it is recommended to consult a buyer’s agent or a real estate agent. Buying your first home is not easy. You will need help from professionals who do this for a living. Moreover, once you have consulted a professional, you can choose any of the above-mentioned programs that suit your needs.