First time home buyer loans have helped many with low income to buy a home of their own. At present, when the costs of living are touching the sky, people of lower means are finding it very difficult to think of buying a home. Today, due to active involvement of the US government, people with economic difficulty find it easy to get the benefits from first time home buyer loans organized by government sponsored enterprises, as well as local and state agencies. By purchasing your first home, you can save the money you otherwise spent on rent and instead pay for loan of owning your own home.
If you are the first time home buyer, take the fullest advantage of these down payment assistance programs available in today's real estate market. Moreover, if your income meets the qualification confinement, you will enjoy low interest loans, grants offered by different U.S states apart from those loans offered by federal government. Make sure that you choose such a loan whose features and mode of payments are easily handled at any point of time. Try to get a pre-approved loan as this will accelerate the process of getting ready cash. There are also some income restrictions when the eligibility of such loan applicant is in question.
Federal Housing Administration (FHA) loans are good first time home buyer loans that have been around to help people turn out to be successful homeowners since 1934. Small down payments, low and easy credit terms, as well as low closing costs are the most basic feature of FHA loans that make it one of the most opted first time home buyer programs among buyers belonging to low to mid income levels and for financiang bad credit home loans. Here the down payment can be as low as three percent of the total purchase and the accessory fees with closing costs are incorporated in the loan.
If you meet the FHA credit qualifications you will be eligible for up to 97 percent of the total financing. The properties that are eligible for the FHA loan are up to four unit structure. Also, first time home buyers used to be eligible for tax credit and the maximum credit was calculated to be about $8,000. Service members still may be eligible for a first time home buyer mortgage.
As the prerequisite of FHA loans differ with location, check your eligibility on the basis of the loan limits of your location as well as the ratio of loan-to-value. You can find a mortgage company who focus on advising on FHA loans and get help to approve your loan.
The U.S. Department of Housing and Urban Development (HUD) is yet another option from which you can buy homes at notable discounts. Now what are HUD homes? They are one to four unit housing obtain by HUD. Anyone having cash or qualification for getting a loan can purchase an HUD home. But HUD Homes are sold with a condition that the buyer must make it their primary residence and cannot use it for renting purpose. Select from the available first time home buyer loans that best fits your needs and boost your process of buying your house.
Author Resource:
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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