Many first time homebuyers depend on loans to purchase their homes. As a first time homebuyer, you are familiar with the struggle of finding the perfect home. When you do finally find the one, you are hit with a hefty down payment price. At times, it can be difficult to make ends meet. Rather than giving up your dream home, you can apply for a loan. Furthermore, you do not have to settle on making a reverse mortgage choice. To ensure that you set yourself up for homeowner success, read on and discover the best first time homebuyer loan programs.
Community Revitalization Programs
Homebuyers who assist in revitalizing their community can qualify for community revitalization loans. Community revitalization careers include police officers, firefighters, and emergency medical technicians. If you are a school teacher, you might qualify for a community revitalization loan as well. Homeowners who qualify can receive funding from the U.S. Department of Housing to purchase their first home. However, the government organization demands that you stay in the home for a minimum of 3 years in exchange for assistance. If you plan to live in your dream home for a few years and you meet the requirements, consider this first time homebuyer loan program.
Another first time homebuyer loan program worth looking into is a state loan program. Since each state provides residents with different homebuyer loan programs, you will have to look into your state specifically. Certain states have specialized programs that target particular areas. Some first time homeowners make the mistake of researching their state’s programs and miss out on specialized area funding. Many opt for using unsecure loans for financial aid, which can create issues down the road. Refrain from doing the same and inquire about your state loan programs.
If your income is on the lower side, there are first time homebuyer loan programs for you to get your dream home too. By applying to low-income loan programs, you can gain the funding you need. Many low-income homebuyers receive assistance from the United States Department of Agriculture (USDA). You can meet loan requirements even with a poor credit score. Plus, some homebuyers who receive a USDA loan do not have to pay a down payment. Whether you are an entrepreneur running a small business startup or you just lost your job, you can benefit from a low-income loan. You can save up your money to repay the loan with the right budgeting techniques. Furthermore, you can budget your money in the comfort of your dream home.
Rehab Loan Programs
Since fixer upper homes have become more popular, government organizations have started offering first time homebuyer loans called rehab loans. To qualify for a rehab loan, you must look in the fixer upper market. With this type of loan, you receive money for both purchasing a home and repairing it at the same time. This makes sense since fixer uppers generally need renovating before anyone can move into them. You can build the home you have always wanted with a rehab loan.
Lastly, some first time homebuyers obtain funding from veteran loan programs. You can receive this type of first time homebuyer loan if you are a veteran. Individuals currently in the military and survived spouses of veterans also qualify. Upon qualifying, the Veterans Administration will supply you with a mortgage loan. You do not have to pay a down payment on the home. Furthermore, private mortgage insurance is not required. Military families can purchase a house with this first time homebuyer loan.
If you plan to depend on a first time homebuyer loan to purchase your first house, you need the best programs. Community revitalization loan programs provide specific employees with funding. While state loan programs differ in each state, you could qualify in your state and receive financing. Low-income loan programs allow less financially equipped families to buy nice homes. If you want to purchase a fixer upper home to renovate on your own, apply for a rehab loan. Veterans, active soldiers, and survived spouses are eligible for veteran loan programs. Use these first time homebuyer loan programs to purchase your dream home.