It is indeed a dream come true when you stop renting and owning your house. However, buying a new house isn't as easy as buying furniture or appliances. For first time home buyers, this may be quite a challenge if you don't know what to do. It is possible that it crossed your mind, probably once or twice, about getting financial assistance through mortgage loans. But you must understand that there are more significant factors that you have to consider before you can purchase your own house. You may have more than one question with regards to a first time home buyer loan.
WHAT IS A FIRST TIME HOME BUYER LOAN?
A first time home buyer loan is a grant given to first time home buyers considering the fact that they don't have prior experience of owning a house or doesn't have enough money to purchase their own. The American Dream Downpayment Act has implemented loan programs that provide financial assistance to individuals who would like to purchase a house through mortgage lending.
I DON'T EARN THAT MUCH. WILL I HAVE ANY CHANCE?
Yes. The Department of Housing and Urban Development, aka HUD, also administers loan programs dealing with better housing for individuals who have low incomes or bad credit. These loan programs will help you purchase a real estate that matches your financial statement and budget. The programs have a price cap for certain properties to avoid mis-usage of first time home buyer loans especially for individuals who have the money.
EVERYTHING SOUNDS GOOD. SO WHAT'S THE CATCH?
The only downside to first time home buyer grants is that, as stated earlier, there is a price cap that goes with certain properties around your area. Since you are a first time home buyer, you cannot expect to get expensive houses even if you have the money. Your options are limited which means you may have no choice but to get a certain property that you don't like. If this is the situation, you may end up selling your house early which will make you lose the benefits enclosed in the program. It would also be possible that you will share increased home values with the lender who provided you the mortgage loan.
HOW CAN I START?
It is advised to check HUD's website for details about first time home buyer loans and programs under the state you are residing in. Once you have read the details, you will have to options to get started. It is either checking with your traditional mortgage lender, government grants, or institutions that offer mortgage loans online. The best way is to not immediately jump into a contract. You have to explore all of your options. Compare price caps and terms. Compare and contrast properties and make sure that you like the property you're about to own. It wouldn't hurt to ask your friends and family for their opinion and it would be best if you will conduct research before engaging into this kind of transaction.
Owning your first home with the help of a first time home buyer program is a good investment for yourself and your family. Take advantage of these low monthly installments to build, not only your own house, but your own life.
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Oliver Silverstones makes it easy for the first time home buyer to find all the state and local first time buyer programs. He keeps an update of the best fixed rate mortgage rates daily, as well as providing great advice to avoid most first home buyer headaches.
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