Purchasing your first home is one of the most exciting times in your life. It can also be one of the most financially-exhausting. Fortunately, inexperienced buyers in Fairfax, VA have access to the First Time Home Buyers Program. This program contains a number of grants and incentives designed to help first time home buyers sail smoothly through the buying process. One option within the First Time Home Buyers Program is the Good Neighbor Next Door Program. Learn more about this program and how it can help you.
Good Neighbor Next Door Program
The Good Neighbor Next Door Program is a program offered by the U.S. Department of Housing and Urban Development (HUD). It is specifically designed for use by pre-K through 12th grade educators, as well as law enforcement officers, firefighters, and emergency medical technicians. With the Good Neighbor Next Door Program, eligible candidates can get up to a 50 percent discount from the list price of homes located in targeted revitalization areas. However, to be eligible you must commit to living in the home as your sole residence for a period of at least 36 months.
Only single family homes that are located within revitalization areas are eligible for the Good Neighbor Next Door Program. Each property is only available for purchase for seven days with the program. A location is considered a revitalization area if it fits certain criteria based on household income, homeownership rates, and local mortgage foreclosure rates. Certain HUD-owned homes located within revitalization areas may also be eligible for discounts through special programs, such as HUD’s Single Family Home Locator and Asset Control Area (ACA). To determine if there is a home in your area available for purchase through the Good Neighbor Next Door Program, check the listings for your state.
It is important to understand that while first time home buyers can greatly benefit from going through the Good Neighbor Next Door Program, the program is not limited to first time home buyers. The program is actually open to all buyers. However, to be eligible you cannot own another property at the time of purchase or within one year before your closing date. You must also choose a home located within a certain revitalization area.
There are a number of benefits to buying a house using the Good Neighbor Next Door Program. First, the major discounts on home purchases are a major perk. Many eligible home buyers are able to purchase their home for 50 percent off the list price. Unlike traditional home loans, the Good Neighbor program requires a down payment of only $100. This can be highly useful for first time home buyers with limited funds. Any type of mortgage loan can be used in combination with the program. If the home buyer chooses a VA loan, the loan can be used to provide 100 percent financing.
Other First Time Home Buyer Options
The Good Neighbor Next Door Program is not the only option under the First Time Home Buyers Program. Credit Enhancement and Rescoring is available to certain home buyers with limited or sub-optimal credit history. Through this program, home buyers have access to various pricing levels of types of homes. Another option for first time home buyers is the FHA loan. Backed by the Federal Housing Administration, FHA loans provide lenders with an extra layer of protection to ensure that your financial institution does not take a loss if you are unable to pay your mortgage. FHA loans offer a number of advantages, such as competitive interest rates, minimal down payments, and low closing costs.
USDA loans are a popular option for home buyers looking to purchase a home in a rural area. This type of loan comes with numerous perks, such as low interest rates and a fixed rate. USDA loans do not typically require a down payment. Another option for first time home buyers is the VA home loan. Under this federal program, home buyers can gain access to low interest rates, no down payment, and no requirement for mortgage insurance. VA home loans are backed by the Department of Veterans Affairs and are designed to assist veterans, servicemen, and military spouses.
Learn More About First Time Home Buyers Programs
In addition to the options mentioned, first time home buyers may also qualify for other programs, such as Fannie Mae HomePath Loans, Energy Efficient Mortgages, FHA Section 203k Loans, Native American Veteran Direct Loans, or other state and city programs. If you are ready to take the next step to purchase a home, know that you have a number of options open to you. For more information about the Good Neighbor Next Door Program or any other available First Time Home Buyers Programs, contact a professional Fairfax Mortgage Broker today.