Saving up for a down payment, finding your dream starter home and moving in can all be exciting. But being a first-time home buyer can also cause lots of stress in figuring out how to navigate the buying process. Luckily, there is a first-time home buyers program that can help you through it.
These programs can assist you with financing and help you find the home that you want. If you are interested in applying for one of these great programs but do not know where to start, then these tips will help you learn how to apply for the first-time home buyers program and get you in the home of your dreams.
The Path To Your Dream Home
First time home buying can be scary when you do not know what is available to you, but a first-time home buyers program will give you all the information and help you need to buy your house. With someone behind you helping you out every step of the way, this can make the process easier to handle and prevent surprises from happening along the way.
Available Grants and Loans
There are several types of grants and loans available to home buyers, and knowing what is out there can help you find the option that fits your financial situation the most. Different loans will offer lower down payments, better interest rates or require less credit history, and knowing what all your options are will allow you to pick the best choice for you.
FHA Loans
These loans come from the Federal Housing Administration and protects lenders in the case of a default. These loans have low-interest rates, lowers closing costs and lets you put down a smaller amount for a down payment.
USDA Loans
These loans are used for buyers who are living in rural areas and come with a lower interest, fixed-rate and require no down payment. They are available only to those who qualify based on credit, income and repayment history.
VA Home Loans
These loans are specifically for men and women who have served in the US military, and their spouses, to help them buy a house. They offer low-interest rates, no down payment, and do not require mortgage insurance. These loans are only for first-time buyers and are guaranteed by the Department of Veterans Affairs.
Good Neighbor Next Door
This grant is available for police officers, elementary through high school grade teachers, emergency medical teams and firefighters and can give them half-off a list price of a home in areas that are under revitalization.
Fannie Mae Loans
This program helps first time home buyers by saving them money on closing costs. This loan will allow them up to 3% off the total amount of closing costs.
Energy-Efficient Mortgage
This federal program aims to assist buyers who are eligible for FHA loans to finance improvements to their home to make it more energy-efficient. From solar power to wind technology, this could save you money on energy costs and the loans help with up-front costs of installation.
FHA Section 203(k)
This program is made for individuals or families who intend to purchase a home that will need renovations or repairs. It offers low down payments and allows buyers to include the anticipated repair costs through their mortgage.
Native American Veteran Direct Loan
This program provides veterans who are of Native American descent to finance the construction, purchase or home improvements of houses that are on Federal Trust Land. A few requirements apply, such as credit standards, proof of payment eligibility and intent to live in the home being financed, among others.
The Right Loan Plan for You
With all of these different loan options available to you, looking through them and finding your best option is key. Depending on your particular situation, you may want to go with an FHA Section 203(k) because you want to purchase a home that will require some repairs.
Or, if you want to purchase a home without having to save a large down payment, then an FHA loan may be better for you. Choosing the right loan for you will help make the buying process easier, and allow you to choose what will be better for you and your family.
Also, on top of the loan options mentioned above, your city or state may have even more options that are specific to residents of a certain area. You will want to check out these as well to see if there is a program that could benefit you.
Timeline for Success
Picking the loan option for you could take some time, but it is best to go over every option and save yourself the most money. However, once you decide on your loan and find the house you want, you can close on your house within 30 to 45 days. This timeline is from the day that your offer is accepted to the day of closing.
Teaming Up with FMI to Get the Best Quality
Want some help getting through this process? Then contact Fairfax Mortgage Investments and find an expert who will help you figure out which loan is best for your situation, and get advice along the way. Having the support of the team at Fairfax Mortgage Investments can help guide first-timers through the difficult homebuying process.
