First time homebuyers dream of their new home but may worry about how they will finance it. Will they have enough money for a down payment? Are they even eligible for a first time homebuyer program?
When shopping for the best mortgage rates and lender for you, ask about first time homebuyer programs and their requirements. You may find yourself pleasantly surprised at what is available to you!
Making Homeownership More Accessible
At its most simple, first time homebuyer programs are programs designed to make owning a home more accessible. These programs offer financial assistance to qualified buyers who have income restrictions and good credit scores.
From these programs, you can get:
- Grants
- Assistance with closing costs
- Interest savings
- Loan forgiveness
- Down payment assistance
In some cases, you may be able to put as little as 0% down on the home. Just remember to read the fine print! You may have to pay higher interest rates and monthly payments.
You May Be Required To Take A Homeowner’s Education Course
When you apply for a first time homebuyer program, you may be required to take a homeowner’s education course. These courses teach you the ins and outs of owning a home, including budgeting and managing debt.
Many States & Counties Already Have Funds Allotted To First-Time Homebuyer Programs
Another reason to use a first time homebuyer program if you are qualified is that many states and counties already have funds allotted to these programs. Talk to your lender about programs in your area. She will access information on how much money is left in the program for the year, as well as guide you to the best first time homebuyer program for you.
For example, if you will be purchasing in a rural area, you may qualify for a USDA first time homebuyer loan for rural development.
Be Aware Of Common Mortgage Fraud Schemes
When looking for a first time homebuyers program, be aware of common mortgage fraud schemes. One common danger is being notified by mail that your loan has been sold (usually shortly after you close) and that you should direct future payments to a new address and entity. The Merchant Team will guide you throughout the process and be available after the transaction is closed to keep you safe and up to date on the latest scams. The Merchant Team is just as exceptional after the sale is closed as they are during the purchasing process!