Kathy Foran - REALTY EXECUTIVES Boston West



Posted by Kathy Foran on 1/29/2017

Being a first-time home buyer is tough. It can seem like you have undertaken one of the most overwhelming processes ever. There’s so much to learn in the process of securing a mortgage and closing on a home. If you go into buying a home prepared with knowledge, it will be that much easier for you. 


There’s a lot of terminology to learn about the home buying process. You’ll need to know who should be involved with the transaction including agents, lawyers and bankers. You’ll need to be prepared for the fees involved in buying a home as well. There are many different programs available to help first-time homebuyers that can help you save money and secure your first home. Here’s just some of those programs: 


FHA

This is the Federal Housing Administration and it’s a very popular go-to for first-time home buyers. It’s also great for people who have tarnished credit history. As a borrower with FHA backing, you can qualify for a loan with as little as 3.5% down. These FHA loans have an additional cost built into them which is mortgage insurance. In case you default on the loan, this protects the lender.


The Department Of Veteran’s Affairs


This resource helps veterans, service members and their surviving spouses to buy homes. Often, this program requires no down payment or mortgage insurance. The problem is that getting these kinds of loans can take awhile to process, so you can’t be in a big hurry to buy a home.


Good Neighbor Next Door


This program is meant for teachers, law enforcement, firefighters and emergency medical responders, which is why it’s called the “Good Neighbor” initiative. This is a program sponsored as part of the Department of Housing and Urban Development. It allows 50% discounts of the price of homes in places considered revitalization areas. All you need to do is be in one of the said professions and commit to living on the property for at least 3 years. The catch is that these homes are listed for just 7 days on the Good Neighbor Next Door website.


Fannie Mae and Freddie Mac


These are government-sanctioned companies that work with local lenders to offer good mortgage options for first-time home buyers such as 3% down payment options.


USDA


The U.S Department of Agriculture has its own homebuyers’ assistance program. The benefits are for people who live in rural areas and allows 100% financing by offering lenders mortgage guarantees in return. There are income limitations that can vary by region.

Assistance Isn’t Hard To Find


As you can see, there are many programs available to help first-time homebuyers. From downpayment assistance to ways that you can keep your mortgage payments low, you can find some help if you need it. You may feel that purchasing a home is something that’s far in the future the future, but with federal programs, more people can realize their dreams of home ownership.        




Tags: mortgage   FHA loans   home loans  
Categories: Uncategorized