Buying a home is an exciting yet stressful at the same time. Purchasing your first home is more than picking out the perfect house. Get ready for all the other moving parts that are involved. The terminology, the fees and the number of players involved. It is only natural that you would want to push through the process as fast as you can. Though this a novel idea, you should really research your options.
After all- a home purchase is one of the biggest 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? There is truth to this saying. 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 the service men and women, the U.S. Department of Veterans Affairs offers this wonderful program. This program was tailored to meet the needs of our veterans and surviving spouses who wish to become home owners.
Have you ever wondered what USDA actually stood for? For starters, you do not have to live on a farm to obtain this type of financing. Ha! Interesting, right? 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 actually targets rural areas, and allows 100% financing by offering lenders mortgage guarantees and varies by region.
Are you that buyer that has vision and always falls in love with that “diamond in the rough”. This loan program is designed for buyers who enjoys those fixer uppers. This is another FHA-backed loan program. It looks at the property value, with projecting the after improvements in the consideration. What does mean for you? It allows you in advance, to borrow funds which needed to complete the project. This funding is rolled into your (total) mortgage amount.
Good Neighbor Next Door
This loan program is for all those law enforcement officers, firefighters, EMT’s, and teachers! That’s right, this is HUD-sponsored program, which allows 50% discounts on the list price of homes located in revitalization areas. Too good to be true? NO! You just have to commit to living in the property for at least 36 months.
Food For Thought
Did you know that Fannie Mae and Freddie Mac were created by Congress? That’s right…these financing platforms play a huge role in our nation’s housing financing system. They provide (ready access to funds within reason) banks, savings and loans, and mortgage institutions that make loans to finance housing. Pretty neat, huh?
I hope you found this article of value. If so, say so… I would love to hear from you. Happy house hunting!