Owning a home has been a part of the American dream since the beginning. There’s nothing quite like the feeling of buying your first home. You don’t have to be in the “perfect” financial situation to get there either. There are many programs designed specifically for you, the first time home buyer, even if you have bad credit or low income. To find the one that’s right for you, start your search with these first time home buyer programs:
The Federal Housing Administration
The Federal Housing Association, or FHA, works with lenders to provide home loans to homebuyers that may not qualify for other home loans. The FHA insures the lender’s loan so that they are covered if the home is later foreclosed. With FHA loans, requirements are less strict, making it a better fit if you have less than perfect credit or make a lower income. These loans can also help you put down as little as 3% on your new home! Click here for more information.
The Department of Veterans Affairs
The VA is known for having one of the best home loan programs. VA home loans are available to servicemembers and veterans as well as their surviving spouses. It enables lenders to offer better terms by guaranteeing a part of it. You can get a loan through the VA for as little as 0% down. For information on requirements and how to apply, visit the Department of Veterans Affairs website here.
The main purpose of Fannie Mae is to buy mortgages from lenders, but they also have great resources to help first time home buyers get into a home. One of these resources is their educational website called Know Your Options that provides excellent information to help you on your journey to buying a home. Another is there website HomePath, that provides listings of foreclosed homes on the market, which can be a great option for first-time home buyers. For more in-depth educational information, you can join their HomeReady program, which they offer through a partnership with Framework Home Ownership. Though this course costs $75, it can prepare you for a HomeReady home loan.
This nonprofit has an impressive list of programs for “low wealth” families, and individuals and chapters across the nation. They work to help individuals that wouldn’t be able to get into a home otherwise. The program begins with a Home Buyer's Workshop that educates you on the home buying process. A counselor then works with you to find home loans, down payment assistance, realtors and more. For more information on eligibility and how to apply, visit their website here.
These programs are the best ones for first-time homebuyers because of the relaxed requirements and manageable terms. Many other first time home buyer programs and loans have strict guidelines, making them difficult to qualify for. Check out these programs before searching anywhere else, so you can save yourself the time and headaches.
*Please note that UFN is noted affiliated with any of the above programs.
By Alecia Stanton of United Family Network
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