What you may not realize is that many first-time home buyer programs and grants offer financial help. Money issues often stand in the way of homeownership. A survey by the rental service Apartment List found that 80 percent of millennial renters want to buy a home, but most say they can’t afford to.
Here are 3 homebuyer programs and grants designed to help you get a place to call home.
FHA loans help low-income borrowers get a loan without making a large down payment.
- Loan is back by the Federal Housing Administration.
- Down Payments can be as low as 3.5%.
- Credit score requirements are more relaxed.
- Get lower interest rats, despite a lower credit score.
- Borrowers must have a credit score with a bare minimum of 500.
Today, there are over 25.5 million individuals who qualify for some sort of VA loan.
- You have served, full-time, for at least 2 years in the armed forces.
- Or, you have served in the National Guard, or reserves, for a period of 6 years ( this timeline is reduced if you are called to active duty).
- No down payment is required.
- Borrowers do not need private mortgage insurance.
CHFA is Colorado’s trusted partner for affordable and responsible homeownership.
- Credit score requirement of 620.
- Grants and second mortgage loans for down payment and closing cost assistance.
- Sponsored homebuyer education classes.
- Receive up to 2 percent of your first mortgage loan towards your closing costs.
- Zero-percent second mortgage loans.
Other homebuyer programs and grants designed to help you land a great mortgage and get a place of your own.
- Good Neighbor Next Door
- Fannie Mae or Freddie Mac
- FHA Section 203(k)
- Native American Direct Loan
A first-time home buyer has more loan options than just an FHA loan. Depending on your situation you may qualify for some other loan programs that offer advantages over an FHA home loans.
Buying a house for the first time doesn’t have to be scary. Make sure you work with a great Realtor and loan officer and the process will be seamless. Check your credit score, hire a good Realtor, compare loan offers from multiple lenders and don’t apply for new credit during the home buying process. Now lets get the ball rolling so you can achieve the American dream without the headache.