First-Time Homebuyers Can Tap Financial Help
| Buying your first home can be a financial challenge. You might need cash for a down-payment, closing costs, mortgage insurance and all the typical moving costs and repairs. Here are some of the many programs that help first-time buyers afford their first home: |
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| Fast Fact A RealtyTrac survey in 2016 found that homebuyers using down-payment assistance loans saved an average of $17,776 over the life of their first home mortgage. |
| Down Payment and Closing Cost Assistance Usually, you’ll have to come up with cash for a down-payment on your first mortgage. This could be thousands of dollars. As a first-time buyer, you may not have this kind of savings. States, counties and cities (more than 2,000 of them) offer help in making the down-payment on a first-time home. The money might be a grant, a second mortgage added to the first mortgage or a loan that you don’t have to pay back until you sell your home. Government-backed Loans That Help with Down Payments, Interest Rates and Lower Credit Scores The government offers loan programs that help lower the down-payment requirements or, in the case of military personnel and veterans, may eliminate down payments. The USDA has similar programs for eligible rural areas. FHA-backed loans for first-time homebuyers may lower both down-payments and your required credit score, with loan options for people with credit scores as low as 580. The FHA offers a “fixer upper” mortgage (section 203(k) loan) where the cost of upgrades can be added to the mortgage if you do the work. If Fannie Mae or Freddie Mac back a conventional loan, your down payment could be reduced to as low as 3 percent, provided you have strong credit. Home Upgrade Loans If you are buying a home that needs energy-efficient upgrades, both the FHA and VA have loan programs that allow you to combine the mortgage and the upgrade costs into one loan. Loans for Special Groups If you’re a first-time homebuyer, Native American and a veteran, the VA has a loan program for you to buy, renovate or build a home on federal trust land. Loans for “Good Neighbors” If you’re a teacher, law enforcement, firefighter or emergency medical technician, you may qualify for the Good Neighbor Next Door program. This program will discount a home price by 50% if it is in a “revitalization area” and you agree to live there for at least 36 months. In addition to these options, many cities and counties offer grants, deferred payments, interest help and even loan forgiveness. Give me a call so we can explore programs to help you make that first big, wonderful step into home ownership. JANICE HOVORKA RE/MAX 303-324-4705 janice@janicehovorka.com http://www.janicehovorka.com Six-Year Five Star Real Estate Agent |