Buying a home for the first time can be a huge hurdle for some people. The idea behind first time buyer incentives is to alleviate some of the burden for qualified buyers. First time buyer incentives are designed to make affording a new home feasible for borrowers who meet minimum financial standards.
These incentives can come in different packages, but the end result is financial assistance. Reduced or eliminated down payment, more affordable interest rates, loans to assist with buyer’s fees such as closing costs, and limitations of lender fees are a few of the most common incentives.
First time buyer incentives vary based on your place of residence. State programs determine a portion of what’s available in your area, but there are some blanket federal programs run by HUD that are more widespread. Applying for any of these incentives takes time and patience.
The most obvious qualifying factor is to never have owned a home before. These programs are specifically designed to help low/middle income applicants with no substantial assets. If you make too much money, you might not be a viable candidate for these incentive programs.
Getting a buyer’s incentive can be extremely helpful for some people; however, it isn’t a free pass. Like many traditional loans, there are restrictions that will apply depending on the circumstances of your incentives arrangement. These could range from anything to price restrictions in the kind of home you can afford to a time stipulation of minimum length of ownership. These restrictions aren’t necessarily negative, but they do merit attention before agreeing to any incentives arrangement.
For more information about first time buyer incentives, call 803-765-1680 and toll-free 800-854-9484.