Assistance for First-Time Homebuyers
Many first-time buyers think they need to have 20% saved up for a down payment, plus funds to cover closing costs. But if not having these funds is the only thing standing between you and buying your first home, don’t worry. Gift funds, down payment assistance, and specialty programs tailored specifically for first time buyers can help you move forward to get the home today.
First-time homebuyer programs are designed to help new buyers achieve their goals of homeownership. These programs generally help remove one of the largest obstacles first-time buyers must overcome when purchasing a home - The Down Payment.
A larger down payment is generally recommended for buyers who want to avoid paying mortgage insurance, but saving those funds can take time. For many buyers, the money needed for a down payment can be one of the biggest hurdles to buying their first home.
Fortunately, there are loan programs that contain down payment assistance programs specifically designed to help first-time buyers who have little, or even no cash saved for a down payment.
So, if you have been worrying about where to find the funds needed to purchase your very first home, take a look at a few of the first-time homebuyer down payment assistance programs currently available today:
FHA Loans - FHA loans are insured by the Federal Housing Administration, and these government backed loans have been designed specifically to help buyers achieve their goal of homeownership. FHA loans have lower down payment requirements compared to conventional (private lender) mortgages. With an FHA loan, your down payment can be as low as 3.5% and can be gifted to you from a family member or friend. FHA loan guidelines are also more lenient, and allow for lower credit scores and lower debt ratios. They will also allow the seller to contribute towards closing costs.
USDA Loans - The only government backed loan program that offers 100% financing for all qualifying borrowers, a USDA loan is a great option for first-time buyers looking for a zero down payment option. USDA loans do have some very specific eligibility requirements, including the location of the property. USDA 100% financing loans are intended for buyers who want to purchase rural property outside of major metro areas.
VA Loans - The U.S. Department of Veterans Affairs insures VA loans and helps veterans, active military persons, and surviving spouses purchase their dream homes. VA loans are available with up to 100% financing, have no mortgage insurance requirements, and offer more flexible eligibility guidelines.
From help with closing costs to 100% financing, MortgageRight can help you understand the many programs available to help first-time homebuyers achieve their goal of homeownership.
Buying your first home is exciting and you have many loan programs and options available to you. Partnering with an experienced mortgage loan officer is an important part of buying your first home. From help with closing costs to 100% financing, MortgageRight can help you understand the many programs available to help first-time homebuyers achieve their goal of homeownership.
Contact MortgageRight at 205.776.8401 or Contact@MortgageRight.com for more information.