Purchasing a home for the first time can be quite a daunting task. There is a lot of paperwork involved, strange financial terms, costs, fees and many other things that are often difficult to understand. It easily becomes a hurdle for many new home owners.
However, the following are a few of the incentives for first time homeowners that can make the process easy for you:
With this incentive, the Federal Housing Administration helps insure your mortgage. This gives you a layer of protection so that you won’t experience a loss if you default on the mortgage. FHA loans have competitive interest rates, lower closing costs, and smaller down-payment requirements than conventional loans.
This homebuyer assistance program is offered by the U.S. Department of Agriculture and focuses on residences in certain rural areas. You don’t need to run or buy a farm to be eligible, no down payment is required, and the loan repayments are fixed.
VA loans are run by the U.S. department of Veterans Affairs and help guarantee part of the loan in order to make it possible for lenders to offer home buyers (service members, veterans and surviving spouses) special features. These types of loans offer competitive interest rates and require no down payment.
This incentive is supported by HUD and aims at providing housing for firefighters, law enforcement officers, emergency medical technicians and teachers in the range of pre-kindergarten to 12th-grade. The program gives home buyers a discount of 50% on the home’s listed price in specific areas called “revitalized areas”
This incentive is sponsored by the government but through the Fannie Mae and Freddie Mac entities. The entities work with local lenders to provide mortgage options that benefit low or moderate income families. With the backing of these entities, lenders can offer competitive interest rates and down payments that are as low as 3% of the purchase price.
For more information on these and other incentives for first time homeowners, contact Midland Mortgage today!