Young couples and people looking to purchase a home can sometimes find it more difficult because of student loans that have come due and because they are still relatively new in their career. There are many types of loans available to first time home buyers that can alleviate some of the pressure of having to come up with a large down payment. You can choose one of several loans that is geared towards the first time buyer. The advantages of a first time home buyers loan are:
* You can make a low down payment.
* Interest can be subsidized.
* You can avail of grants.
* Loan forgiveness.
* The fees that lenders charge are limited.
* You can choose deferred payment plans
Government Aid for First time Home Buyers
First time home buyers get excited when they find out they can get a loan with little to no money down. The Housing and Urban Development department supplies states with funds that can aid low to medium income home buyers with covering their closing costs on their first home. These loans for first time home owners can be $10,000 or more.
There are some loans that are forgiven when the home owner stays in his home for more than 3 years; there are also programs that offer a 10% discount on the price of the home. Most people who qualify for these loans are usually earning less than 80% of their region’s average income.
If you are looking for a particular loan, you can contact your state housing finance agency to find the loan that is right for you. Or you can get online and research home buyer loans for first time owners and come up with more than enough information to get you started.
There are places to go in your own community to help you find the right loans; all you have to do is know where to look. Churches and local organizations are great sources when it comes to finding the right loan for you.
There are many loans and grants to be had by the first time home buyer so it is better to take your time and research them well. There are rules to be followed and sometimes they can become irritating but what better price to pay when you are actually able to find free money for the purchase of your very first home.
Some grants make the potential owners take certain classes that can add up to several hours of class time. They are taught the basics about finding good lenders and learning their credit scores along with a lot of other information that proves to be helpful to first time home buyers. Doing it right the first time can save a lot of heartache in the end with a loan that goes south on you. Take the time to research and you will be one step ahead of the game.