You know you can receive government help to buy a home for the first time? Well, there are several government programs so that you can buy your first home, you only have to meet the requirements that are demanded and then submit your application, but if you do not know what are the programs you can go to to buy your home, then you will know them …
What are the government assistance programs to buy a home for the first time
Among the programs government help to buy a home for the first time the following are distinguished:
Housing vouchers is a program for you if you live in public housing or belong to a low-income family that wants to buy your first home. To find out if you qualify for this program, you should contact your PHA (local public housing agency near your home).
Program section 184
The section 184 program is an Indian home loan guarantee program that refers to a mortgage designed for you if you belong to an American Indian family.
Veterans and Service Members Program
The Veterans and Service Members Program is designed to provide assistance to active service members and veterans, which is provided by the Department of Veterans Affairs)
There are also several state programs that are regulated by the legislation of each state in particular, for which you should contact your state housing finance agency or the state HDU office and you will obtain the information related to the special programs that it administers. your state and properties within your area.
Programs for rural residences
RD (Local Rural Development Office can provide you with information regarding single-family housing programs with rural residence.
If you are interested in a property with foreclosure, you can contact a licensed real estate agent and they will be able to advise you on the availability of purchasing a property under these conditions.
- HUD homes are properties whose homeowners defaulted on their mortgage and HU takes over that property.
- You may be eligible to purchase a HUD home based on your credit score, if you can cope with obtaining a mortgage and a down payment in cash.
- If you have an FHA insured mortgage you may be eligible to purchase a HUD home.
- It also offers you a program with home purchase vouchers that belongs to HUD as a department of housing and urban development that you can access if you belong to a low-income family and want to buy a home, then HUD helps you with compliance with the monthly mortgage payments and house expenses.
All this as long as it is your first home and you meet the minimum income established by the local PHA, an adult who is currently working and has been working for at least one year.
- To enroll you must contact your local PHA or HUD customer service.
FHA program for first time buyers
- FHA is the Federal Housing Administration that handles the administration of FHA loans. If this is the first time you buy a house, it is a good option because it has more flexible requirements than other loans.
- To know if you are eligible, you must estimate the initial payment, what are the closing costs and what is the credit score that allows you to apply to the program.
- A cash payment is determined that can be 3.5% of the purchase price.
- As for the closing cost, it can be partially covered or cheaper than other loans.
- Regarding the credit score, it does not require you to be high.
- To apply for this loan, you must apply through a lender that has been approved by the FHA.
- In fact, FHA are loans that correspond to private lenders insured and regulated by the FHA, that is, it is not the FHA that lends you the money but private lenders.
- You should also know that the FHA loan is insured by the federal housing administration and they are the most famous among those who buy their home for the first time.
- You can qualify if you have a credit score of 580 or higher and between 500 and 579 if your down payment is 10%.
- The higher the credit score, the higher the interest.
First-time home buyers
- For first-time home buyers, the FHA program is best because the credit score requirement is quite flexible and down payments are low.
- You can easily qualify for an FHA loan because the down payment is low and does not require a perfect credit score.
- The fact that it is an assumable mortgage is also an advantage, that is, you can put your house up for sale and whoever buys it can take over the loan.
- Even the FHA part lets you qualify even if you’ve filed for bankruptcy or if your credit score is bad or low.
- In any case, as it is an unconventional loan, it requires an insurance premium in advance or with the financing in the mortgage and a monthly payment insurance premium.
- Even the home will need to be appraised by an FHA appraiser.
- As for the insurance premium, it is the UFMIP, it is a single monthly advance payment that corresponds to 1.75% on the mortgage loan regardless of your credit score. The value of the premium can be transferred to the mortgage or you can pay it in advance at closing.
- The annual premium, or MIP, is a charge per month included in the mortgage payment, the amount of which is calculated as a percentage of the value of the loan.
Government Help To Buy A Home For The First Time 2018
Begin the process to receive help from the government to buy a home for the first time 2018 as follows:
- Get a copy of your credit report at annualcreditreport.com, the government site that lets you get your copy for free.
- Review the report trying to find possible errors in the report and if you find them, start a dispute in Equifax, TransUnion and Experian.
- Check your credit score because it will be the important factor in getting your mortgage approved.
- Get the mortgage pre-approved before looking for your home by talking to a lender and a loan officer will check your credit, income and assets and you will get your pre-approval for the real estate agent to start the search for your home.
- Know the initial payment because its amount will have to do with the possibilities of the mortgage that you obtain.
- Hire an experienced real estate agent who will help you through the search process and negotiate with the seller.
- Budget for all the costs involved in the property such as closing costs, mortgage insurance, HOA fees, homeowners insurance, etc.
- Make a comparison of your monthly income with the obligations per month that the debt implies including the expenses of the car, credit cards, etc.
- Know all the loan options such as government help to buy a home for the first time like conventional loans, fha home loans, VA loans, and USDA loans.