Buying a home is the proudest moment for a first-time home buyer. Becoming a homeowner is the American dream. However, for a first-time home buyer, buying a home can be distressing. You come across fees and costs that add up quickly, there’s plenty of paperwork, and new financial terms. Purchasing a home should be taken seriously. Many Americans say that the most difficult thing to do is to save for a down payment. First-time homebuyer programs and grants offer financial assistance to you so that you may be eligible to buy a home. Traditional mortgages require a higher down payment and qualifying them can be difficult.
5 Grants and Programs for First Time Home Buyers
Below are five grants and programs that will help you find a suitable mortgage program.
1. FHA Loan
The FHA loan is insured by the Federal Housing Administration (FHA). The FHA is an agency that operates within the U.S. Department of Housing and Urban Development (HUD). The FHA backs lenders with a layer of protection. This means that the lenders won’t experience a loss if you default on the mortgage. FHA loans come with a smaller down payment, lower interest rates, and lower closing costs than conventional loans. If you have a low credit score, you still might qualify for an FHA loan.
2. USDA loan
A USDA loan is a homebuyer assistance program by the U.S Department of Agriculture (USDA). The USDA mortgage program focuses on residences in certain rural areas. There may be no down payment required for the USDA loan program.
3. VA loans
VA loans are special kinds of loans for active-duty military members, veterans, and surviving spouses to help them purchase homes. VA loans require no down payment and offer competitive interest rates. You do not need to pay private mortgage insurance (PMI) and a minimum credit score is not required to qualify for a VA loan.
4. FHA 203k
An FHA 203k loan is a rehabilitation program for a fixer-upper. This loan is backed by the FHA. The value of the home will be considered after improvements have been made. The FHA 203k loan allows you to borrow the funds you need to fix the home and includes them in your main mortgage. The down payment for a 203k loan will be lower.
5. HomePath Mortgage
A HomePath Mortgage is made exclusively for first-time home buyers. If you become eligible, no down payment is required. Home buyers should occupy the property as their primary residence. This loan is available to move-in ready properties for both owner occupants and investors.
If you’re a first-time home buyer looking for a mortgage lender in MA, Drew Mortgage Associates, Inc. can help! Drew Mortgage Associates, Inc. is a mortgage company in MA that can help provide mortgage loans with a low-interest rate or reduced term. Our home loan officers are highly trained professionals that can help you identify the best mortgage program that’s right for you and will guide you throughout your home loan process. So what are you waiting for? Call Drew Mortgage Associates, Inc. today!