You can get to find the perfect home for your budget, but it will take some time and effort on your part to do vital research that can greatly aid you in buying a home. It is your advantage to evaluate your financial standing, meet with various lenders to assess loan packages, meet with real estate agents, and do research on the neighborhood you plan to live in.
A lot of people do not know that there are first time home buyer programs being given by several community and government facilities that will help them in the financial aspect of their home buying. Almost all states have some type of community development department that helps match buyers with homes and financing programs, though this may vary per state and region. If you are looking for financial assistance so you can procure your first home, here are some of the first time home buyer programs that may be able to help you:
First Time VA Homebuyer Programs from the Housing Finance Authority: several banks and community assistant centers help people who have met the program's eligibility requirements based on income level and location of the home. Financing for purchase of new or existing home for moderate, middle, or low-income family is provide so that they can purchase a new or existing home.
Low Interest Mortgage programs: moderate or low-income families can be extended low-interest mortgage and approval is based on family size, household income, and credit history. Though programs may vary per state and region, this program is being offered by many of the established financing institutions.
Down-Payment Assistance programs: numerous first time home buyer lack funds for down-payments. In the book, "The Home Buyer's Question and Answer Book", author Bridget McCrea, stated that this program can provide financial help in the form of interest-free second mortgages to cover the cost of the down-payment. This program is made available to moderate and low-income families, and sometimes loan payments can be deferred for up to 5 years.
First Time Home Buyer Counseling: many financial institutions and real estate agents offer free workshops and seminars to first time home buyers to educate them about the process. Attendees of these events are usually given a special rate for financing or other incentives, and will get a wealth of information about the home buying process, and even sometimes gain some financial rewards.
Seller Financing: many buyers who want to get a higher loan than what a lender has offered usually ignore this option. When a buyer and seller agrees and make a loan arrangement for the property, this is what is known as seller financing. The buyer negotiates for a loan with the seller and the monthly payments are given directly to the seller. This is an excellent alternative that you can choose aside from getting a loan from a financial institution or credit union.
First time home buyers have several financing options but many are often unaware of these choices or neglect to look into them carefully. Qualified real estate professionals will be able to assist you in finding the best program among these that will suit your needs. If you are buying your first home and meet with the eligibility requirements, it will be to your advantage to take the time to check with for local community assistance or the development board for specialized programs and other incentives.
You might be taking a closer look at becoming a first time homebuyer after Congress passed the housing bill recently. The bill includes a few incentives that really make now the perfect time to jump into the market and become a first time homeowner.
Of course, the depressed real estate market is enough incentive for quite a few people wanting to take advantage of the lower prices of homes; however, the government is now offering a tax credit that makes it hard to not jump in. The full tax credit of $7,500 is exceptional as it is obtainable to couples who make no more than $150,000 in joint income, which makes a huge number of people able to qualify.
Quite a few people are feeling that the time is right for them to get active in the housing market, buy their first home and utilize the incentives including the tax credit. The people with the most to offer the market are the first time homebuyer who does not bring additional housing into the market; all they bring is their ability to buy.
The tax credit is appealing to many because it is not something in which you have to apply; it is something you claim when you do your taxes. However, the tax credit does not come without certain requirements and regulations.
The tax credit is based on 10 percent of the sale price of the house with a roof of $7,500. This means that a house that sells for %75,000 or more will qualify for the full $7,500 credit. A house that sells for $65,000 will only qualify for $6,500 credit.
It is also important to note that the tax credit is really more of an interest free loan that has to be paid back over a 15 year period. When you claim the tax credit you will receive the total amount on your taxes and will then have to pay it back over then next 15 years with the total remaining balance due if you sell your home before the loan is paid off. Since there is no interest on the credit it will cost you $502.50 a year if paying back the full $7,500 credit.
There are other incentives available through state programs and private programs such as a lower interest rate for public servants such as teachers, military, police and firefighters. These incentives are available for all, not just first time homebuyers.
Down payment assistance is also available from many lenders; however, the requirements and restrictions are a bit stricter now than they have been in the past. The credit score is very important when applying for a 0% down payment program.
A realtor can and often will point you to more incentive programs than even the ones discussed above. The housing market is defiantly a buyer's market and for anyone who is considering entering the market now is the best time.
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