First Time Home Buyer Programs: Benefits, Processes, Tips and More : Current School News

First Time Home Buyer Programs: Benefits, Processes, Tips and More

Filed in Articles by on October 21, 2021

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– First Time Home Buyer Programs –

Notably, there are several first time home buyer programs and subsidies available to assist you with your first real estate purchase. Often, it helps with the down payment and closing expenses. Furthermore, in this post, I’ve compiled a list of programs for first time home buyers that will help you get into your first house without requiring a 20% down payment.

First time home buyer program

First, we define a first time home buyer as any individual or family who has not had an ownership interest in a house within the previous three (3) years.

We define ownership interest as any individual who is residing in the house as his/her main residence. Also, the individual is mentioned on the Deed of Trust.

For married couples, both spouses retain an ownership stake. Besides, the name appears only one on the Deed of Trust. Being a first-time home buyer enables you to take advantage of our Mortgage Credit Certificate program.

Table of Contents

What to Consider With First Time Home Buyer Program

Before searching for first time home buyer programs, it’s essential that you first make sure you fit the criteria of a first time home buyer.

Many charity and government program consider you a first time home buyer if you haven’t bought a house within the previous three years.

This covers investors who own rental or investment homes, whether it’s deemed your main residence.

Some government-backed programmes, such as an FHA or USDA loan, demand that the property fulfil specific criteria before qualifying. There may be income limits for municipal and state programmes, as well.

Importantly, regardless of what programs you may qualify for, buying a house is a big financial decision. However, that means look at what you can afford, which includes factoring in maintenance expenses.

Once you work out a reasonable budget, talk to a trustworthy lender that is knowledgeable about first time home buyer program.

Qualifications of First Time Home Buyer Programs

Mortgage requirements: Mortgage lenders want to know that you have the ability and willingness to make timely payments on your home loan. They evaluate your eligibility based on four major criteria:

1. Credit score

Individuals with high credit scores have shown that they are excellent money managers and responsible borrowers. The higher your credit score, the more loan options you’ll have and the lower your interest rate will almost certainly be.

2. Debt-to-income ratio (DTI)

This ratio determines current obligations consume how much of your gross monthly income. These include debit and credit card payments, housing expenses and child support.

3. Down payment 

The greater your down payment, the better the mortgage deal offered. However, many loans have low down payments of only 3% or 3.5% of the purchase price.

Furthermore, if you qualify for a VA or USDA loan, you will not need any down payment at all.

4. Adequate and consistent income

You’ll need a solid work history that shows you can keep down a job. Besides, a job that pays enough to cover a mortgage on top of your current obligations.

Moreso, all of this applies to both existing homeowners and those who qualify as first-time home buyers.

First time buying process

The First Time Home Buying Process

However, in considering first time buyer programs, there are purchasing procedures. Moreso, these processes are step by step guides for house purchase. They are:

1. Figure up your budget

Being honest with yourself, your real estate agent and your mortgage lender are essential. You don’t want to end up with a home you can’t afford.

Do a comprehensive assessment of your personal money, and calculate out how much you’ll actually be able to put down every month. Make sure to include in maintenance expenses and allow space for unforeseen situations.

2. Get quotations from at least three lenders

Shopping around is one of the most essential aspects of obtaining a mortgage. You want to be sure you’re receiving the greatest likely deal. Therefore, be careful to examine all the conditions each lender is providing.

However, this includes the APR, not just the interest rate.

3. Get pre-approved for a loan

Once you settle on a lender, you get pre-approved for your mortgage before you look for a home. It will show sellers you’re a serious buyer. Also, a preapproval will also help you solidify your budget.

Meanwhile, you’ll have a better idea of what your mortgage will be after you close. Be prepared for a lender to look into all areas of your financial life in order to pre-approve you for a loan.

However, have all of your papers available ahead of time.

4. Find a reputable real estate agent

First, work with an educated real estate agent. Also, discuss the region you want to purchase. Do you want an agent that can help you locate the perfect house?

Certainly, negotiate the best offer and suggest additional experts for any improvements you wish to undertake after you move in.

5. Shop for your home

Firstly, make sure your realtor truly understands what you’re looking for. Also, do your homework not just in the houses you’re going to view, but also in the area.

It’s a good idea to visit the neighbourhood you’re planning to relocate to at various times of day, on weekdays and weekends, to see what the atmosphere is like — and never purchase a home sight unseen.

6. Make an offer

The first thing to do is talk to your real estate agent about a fair offer. Secondly, tackle some back and forth with the seller.

The property market nowadays is extremely competitive, so you may have to bargain against other potential purchasers.

Even so, it’s essential not to blow your budget. At this point, it’s tempting to let your emotions get the better of you, but you don’t want to be stuck with housing debt you can’t pay.

No matter how much you adore a specific house, you need to be prepared to walk away if the numbers eventually don’t work for you.

7. Negotiate closing costs

There are closing fees associated with every real estate transaction, and there are many methods to pay them. However, they fix it on your loan. Alternatively, they may prepare the seller to pay part of your costs.

Don’t overlook this portion of the deal – you may bargain your way into reduced fees and cheaper expenses overall.

8. Hire a house inspector

When you settle on a house you want and make an offer. Moreso, it’s essential to have the home properly examined before they can complete the transaction.

Do you want to check sure there aren’t any unforeseen structural problems? However, inspections typically take a few hours, and cost a few hundred to a few thousand dollars, depending on the size of the house.

9. Get homes insurance and complete move-in details

The lender typically needs homeowner’s insurance and helps to safeguard your investment. Just as with your mortgage, get estimates from multiple providers. 

If your house is in a federally designated flood zone, you’ll need to purchase flood insurance, too.

10. Seal the transaction at closing

Once they approve and inspect your offer, you’re on your road to closing.  However, you’ll have to get updated pay stubs. Also, other financial documentation shortly before closing to show your job status hasn’t changed.

In addition, you’ll be able to make your mortgage payments. Within 24 hours after closing, you’ll conduct a final walk-through of the property.

Further, it is to ensure they complete repairs and that the house is empty.

Tips for first time buyers

Tips for First Time Home Buyer 

Importantly, your first house is a significant purchase. However, it may be even the biggest one you’ll have ever made up to this point in your life!

Because of that, you don’t want to risk messing this up. A real estate expert will take the weight off your shoulders. In fact, by helping you locate a house, negotiate a contract, and see the process through to closure.

1. Pay off all debt and build an emergency fund

It may not be the first time home buying advice you were anticipating. But it is hands down the most essential.

Why? Because buying a home is costly. Even more expensive than renting. Even if your monthly house payment will be comparable to or lower than your present rent amount. When you own a house, you’re accountable for everything.

2. Use the 25% rule to know how much house you can afford

Before you become emotionally connected to a gorgeous home, examine your monthly budget. Also, decide how much house you can afford.

Make sure your monthly housing expenses are going to be only 25% of your monthly take-home income.

3. Save a 10–20% down payment

However, if saving enough to pay cash for the entire price of a property isn’t realistic for purchasing your first home, at least save for a down payment of 10–20%or more.

A 20% down payment gets you out of paying for private mortgage insurance (PMI). Moreso, it protects the mortgage company in case you can’t make your payments and wind up in foreclosure.

PMI typically costs 1% of the entire loan amount. Also, they charge you that 1% every year. So it may actually add a lot to your monthly mortgage payment.

4. Don’t forget to save for closing costs

Along with your down payment, you’ll also need to pay closing fees. On average, closing expenses are approximately 3–4% of the purchase price of your property.

In addition, your lender will offer you a precise amount so you know exactly what to bring on closing day.

5. Get pre-approved for a loan before house hunting

Once there is enough cash saved to pay for closing fees and 10–20% of your house, you’re ready to handle the rest by talking to a mortgage lender.

Moreso, get pre-qualified for a loan and take the additional time to get a preapproval letter. After, you start your house hunt.

Preapproval tells sellers you’re a serious buyer, which is a fantastic method for a first time home buyer to get ahead in a competitive market.

6. Find a home for sale in your price range

Most first time home buyers usually discover the house they bought online or via a real estate agent. Doing both sets up you for success!

Find houses you like online. After, submit them to your real estate agent so they have a clear sense of what you’re searching for.

Then they may utilise a multiple listing service (MLS) to locate houses that match your criteria in your chosen regions.

7. Research neighbourhoods for best fit

Be cautious not to purchase a house solely on the property and price alone. According to a NAR study, house buyers are more ready to compromise on a property’s condition. 

Decidedly, make sure you consider neighbourhood quality and location into your choice.

8. Think long term and be patient

However, for purchasing, a smart approach is to locate the most inexpensive home in the finest area. If you purchase near the bottom of the price range in a pleasant area, you’ll have more room to increase house value.

Future purchasers who are browsing in a $200,000 area won’t be searching for a $300,000 house.

9. Make a competitive offer with your budget

Let’s suppose you located the house you desire and can afford. Since you’re already pre-approved for a loan, you’re ready to make an offer.

If you’re a first time home buyer, it may be hard to determine how much you should offer. That’s when you can depend on the knowledge of your real estate agent.

10. Prepare for Closing

Once a seller accepts your offer, the closing procedure will begin. Keep things going smoothly by understanding what to expect when closing on a home.

The typical closing procedure takes 53 days, which provides you with plenty of time to handle closing issues. A real estate agent will arrange the remaining stages from house inspection to final walkthrough.

Additionally, they’ll keep you updated about any obstacles.

What are the Benefits of First Time Home Buyer Programs?

Benefits of First time home buyer

First time home buyer programs, scholarships and loans are available to assist individuals to become homes. These programs are a type of financial help given to eligible purchasers.

Typically, those who satisfy specific income limits and have good credit ratings. Here are a few different ways you may profit from these programs:

1. Grants

For first time home programs, they use grants as bait. Some regions provide funds to put towards home-related expenses, such as your down payment or closing charges.

2. Assistance with closing fees

However, for first time home buyer programs, some loans put a limit on how much is paid for closing expenses.

3. Deferred payments

Some loans won’t charge interest and won’t need to be returned until the homeowner sells the property or pays off the mortgage.

4. Savings on interest

Some organisations offer to pay for or subsidise the interest or assist borrowers to qualify for loans with reduced interest rates.

5. Loan forgiveness

Homeowners who remain in the house for a specific length of time will have a part of their debt erased.

6. Down payment assistance

Some programs enable homeowners to put down a modest down payment, or none.

Not these kinds of help will be accessible in your region or in your circumstance. There are also some limitations, such as financial necessity.

Therefore, do some research or talk with a mortgage expert to determine whether you qualify.

$5,000 First Time Home Buyer Grant

Buying your first house is a significant milestone in your life. At South-Point Bank House Mortgage, an appropriate financing plan is as essential as finding a home that suits your lifestyle.

To help you get started on firm footing, they assist first time home buyers with obtaining matching money for the down payment and closing expenses required when buying a house.

FEATURES:

i. Contribute at least $1,000 toward the purchase of the house.

ii. Occupy the house as the principal residence for at least five years.

iii. Complete a homebuyer education and financial literacy course.

In addition, at Credit Union SA, they realise how challenging it may be for first home buyers to enter the property market.

How do I get the Grant?

There are two methods you may choose to get your award from Credit Union SA:

a. Have it deposited into an account of your choice to follow settlement.

b. Choose to have it applied immediately towards the settlement of your property purchase. 

They realise that the path to home-ownership is thrilling, but it may also frighten the first time around. Read on to learn about some of the important factors and milestones to reach your goal of house ownership.

Step 1: Where to start?

So you’ve chosen to purchase your first house, but don’t know where to start? Credit Union SA is here to assist you to sift through all the red tape and incomprehensible banking jargon.

Step 2: How much can I borrow?

Every house buyer is different, and the amount that each individual may borrow varies. Your borrowing capacity is determined by your income, your assets, your living costs, and the type of loan you are seeking.

Home Loan Calculators

We offer a variety of useful calculators for First Home Buyers:

i. Repayment calculator.

ii. Buying and selling costs calculator.

iii. Borrowing power calculator.

iv. Loan comparison calculator.

v. Deposit planner calculator.

Step 3: Buying your House

So you’re ready to search for a house. You’ve got your deposit and your pre-approval arranged, so now you can start searching for your ideal house.

Real estate websites are excellent at making homes seem attractive online. But visiting a property in person will speak volumes.

That’s why, besides our extremely low home loan rates, we’re providing a $5,000 First Home Buyers Grant when you borrow at least $250,000 to buy or construct the first home with a loan to value ratio above 80%.

First Time Home Buyer Programs

First Time Home Buyer Programs

Grants and customised financing programs for a first time home buyer are available in cities and counties across the United States.

These programmes offer down payment and/or closing cost help in several formats, including grants, zero-interest loans, and delayed payment loans.

1. FHA Loan

A loan guaranteed by the Federal Housing Administration.

Best for: Buyers with poor credit and lower down payments.

Insured by the Federal Housing Administration, FHA loans usually come with fewer down payments and lower credit score criteria than most conventional loans.

First-time homebuyers may purchase a house with a minimum credit score of 580 and as low as 3.5% down or a credit score of 500 to 579 with at least 10% down.

Unfortunately, you’ll need to pay mortgage insurance with FHA loans if you put down less than 20%.

Your total borrowing expenses may be greater because you’re paying an upfront fee plus yearly premiums.

Unlike homeowner’s insurance, this policy doesn’t protect you. Instead, it protects the lender in case you fail on the loan.

2. USDA Loan

A lending program 100% guaranteed by the U.S. Department of Agriculture. Best for: Borrowers with moderate incomes buying a house in a USDA-eligible rural location.

The U.S. Department of Agriculture, or USDA, guarantees loans for certain rural houses, and borrowers may receive up to 100% financing.

This doesn’t mean you have to purchase a farm or shack up with animals, but you have to buy a house in a USDA-eligible region.

3. VA Loan

A loan guaranteed by the U.S. Department of Veterans Affairs that permits no down payment for service members, veterans and their families

Best for: Active-duty military personnel, veterans and their spouses

Qualified U.S. military personnel (active duty, veterans and qualified family members) may apply for loans guaranteed by the U.S. Department of Veterans Affairs or VA.

VA loans are a fantastic bargain since they come with cheaper interest rates compared to most other loan options and don’t need a down payment.

Borrowers, however, will need to pay a financing charge that is needed on VA loans, although it is rolled into your monthly loan payments.

They may exclude some service members from paying the charge.

4. Good Neighbour Next Door

A U.S. Department of Housing and Urban Development (HUD) program that offers housing help for police enforcement officers, firefighters, emergency medical technicians and teachers

Best for: People working in one of the relevant professions.

The Good Neighbor Next Door programme, sponsored by the U.S. Department of Housing and Urban Development (HUD), offers housing assistance for police enforcement officers.

Also, firefighters, emergency medical technicians and pre-kindergarten through 12th-grade teachers. Qualified participants may get a reduction of 50% on a home’s stated price in “revitalisation areas.”

You may look for homes available in your state using the program’s website. You must commit to live in the house for at least 36 months.

5. Fannie Mae or Freddie Mac

Conventional loans guaranteed by Fannie Mae or Freddie Mac, which need just 3% down

Best for: Borrowers with excellent credit but a modest down payment.

The government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac establish borrowing limits for loans they’re prepared to purchase from traditional lenders on the secondary mortgage market.

Both plans need a minimum 3% down payment. To qualify, homeowners will need a minimum credit score of 620 (though other lenders have varying criteria) and a reasonably pristine financial and credit history.

 Fannie Mae allows a debt-to-income ratio as high as 50% in certain instances.

You’ll need to pay for private mortgage insurance. Alternatively, if you’re putting less than 20% down, but you may have it cancelled if your loan-to-value ratio goes below 80%.

6. Fannie Mae’s Home-Path Ready Buyer Program

A program that offers 3% in closing cost assistance to first-time buyers; must finish an educational course and purchase a foreclosed Fannie Mae property

Best for: First-time homeowners that need assistance for closing expenses and are prepared to purchase a foreclosed house

Fannie Mae’s home-path ready buyer program aims at first-time purchasers interested in repossessed properties that are owned by Fannie Mae.

After completing a mandatory online home-buying education course, qualified borrowers may receive up to 3% in closing cost assistance toward the purchase of a Home-Path property.

The key is locating a Home-Path home in your area, which can be a struggle because foreclosures usually account for just a tiny portion of listings.

7. Energy-Efficient Mortgage (EEM)

Backed by FHA or VA loan programmes and enables homeowners to incorporate the cost of energy-efficient improvements into the main loan upfront

Best for: Homebuyers who want to make their house more energy-efficient but lack upfront funds for improvements

Making “green” improvements may be expensive, but you can get an energy-efficient mortgage (EEM) loan that’s insured via the FHA or VA programmes.

An EEM loan allows you to add the cost of energy-efficient onto your main loan, without needing a bigger down payment.

8. FHA Section 203(k)

Borrow the money required to pay for home renovation projects and bundle the expenses into one FHA loan with your main mortgage

Best for: Homebuyers interested in buying a fixer-upper but don’t have a lot of cash to make significant house improvements

If you’re bold enough to take on a fixer-upper but don’t have the additional money to pay for repairs, an FHA Section 203(k) loan is worth a look.

Backed by the FHA, the loan assesses the home’s worth after they have completed renovations. You may then borrow the money required to pay for home renovation projects and bundle the expenses into one loan.

Improvements must cost more than $5,000 and you’ll need to make a least 3.5%down payment.

You’ll also want to make sure you’re dealing with a contractor that is acquainted with 203(k) loans and their timeframe.

9. State and Municipal First-Time Homebuyer Programs and Grants

First-time buyer programs and grants, accessible via states or localities, for down payment or closing cost help.

Best for: First-time homebuyers who need the closing cost or down payment help.

Many towns provide first-time home buyer programs to recruit new residents.

The assistance comes as grants that don’t have to be returned or low-interest loans with delayed payback. Some programs may have income limitations.

Before purchasing a house, visit your state’s housing authority website for additional information.

10. Native American Direct Loan

VA-backed program offers direct home loans to qualified Native American veterans to purchase, remodel or construct houses on federal trust property

The Native American Direct Loan (NADL) offers funding to qualified Native American veterans and their spouses to purchase renovate or construct a house on federal trust property.

This loan varies from typical VA loans in that the VA is the mortgage lender.

Home Loan Options for Buyers with Bad Credit

Home Loan Options for Buyers with Bad Credit

The two main kinds of mortgage loans are going to be loans guaranteed by the government and conventional loans.

The distinction between the two is that a conventional loan isn’t guaranteed by or insured by the federal government, while government-supported loans are.

You will discover that a loan guaranteed by the government will have fewer criteria for your down payment, your credit and your debt-to-income ratio.

These loans are also less hazardous for lenders.

Let’s check out some of the loan choices available and the typical credit score criteria for each of them:

1. Conventional loans

There isn’t a fixed figure for what your salary, credit score or down payment will need to be for you to qualify for a conventional loan.

However, you will generally need a 620 credit score or higher to qualify for a traditional loan.

If you have more income or a larger down payment, it may be considerably simpler to qualify for a conventional loan even if you have a score a little lower than 620.

2. FHA loans

An FHA loan is a loan guaranteed by the Federal Housing Administration. If you’re a first-time home buyer or haven’t bought a house in the past 3 years, you may qualify for this loan.

The minimal credit score required to obtain an FHA loan is typically about 580. If you can make a 10% down payment, you can definitely be accepted with a credit score between 500 – 579. Rocket Mortgage® needs a minimum score of 580.

FHA loans also have extra criteria that must be fulfilled for you to qualify for the loan. For instance, you can only utilise an FHA loan to buy a main home.

3. VA loans

If you’re a veteran or an active-duty member of the military services, you may qualify for a VA loan.

A VA loan is guaranteed by the Department of Veterans Affairs and enables any eligible service member and their qualified spouse to purchase a house with $0 down.

As with FHA loans, your property must satisfy certain criteria to qualify. And although there isn’t a particular score you need to qualify for the loan, you will need approximately a 580 to be qualified for a VA loan via Rocket Mortgage®.

4. USDA loans

A USDA loan is another loan guaranteed by a government agency, the U.S. Department of Agriculture.

Loans from the USDA enable you to purchase a house in a qualified rural region with a $0 down payment.

Most lenders will need a 640 credit score to qualify for the loan, along with additional income criteria unique to a USDA loan.

State and Local First Time Home Buyer Programs

State and Local First Time Home Buyer Programs

Down payment and closing costs help special loans with lower interest rates and much more are available to first-timers. Learn about the resources and participating lenders in your region.

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First time home buyer programs – Participating lenders

1. Connecticut: CHFA lenders

2. Maine: MaineHousing lenders

3. Massachusetts: MassHousing lenders

4. New Hampshire: New Hampshire Housing lenders

5. Vermont: VHFA lenders

6. New Jersey: NJHMFA lenders

7. New York: SONYMA lenders

8. Pennsylvania: PHFA lenders

9. Rhode Island: Rhode Island Housing lenders

10. Midwest: Participating lenders

11. Illinois: IHDA lenders

12. Indiana: IHCDA lenders

13. Iowa: Iowa Finance Authority lenders

14. Kansas: KHRC lenders

15. Michigan: MSHDA lenders

16. Minnesota: MHFA lenders

17. Missouri: MHDC lenders

18. Nebraska: NIFA lenders

19. North Dakota: NDHFA lenders

20. Ohio: Ohio Housing Finance Agency lenders

21. South Dakota: South Dakota Housing lenders

22. Wisconsin: WHEDA lenders

List of First Time Home Buyer Grants in Texas

First Time Home Buyer Grants in Texas

You can purchase a home in Texas? We can show you how.

The Texas State Affordable Housing Corporation (TSAHC) is a nonprofit corporation that was established by the Texas Legislature to assist Texans in realising their goal of homeownership.

We specialise in helping individuals purchase a house for the first time.

1. Your First Step

Your first step in the home purchasing process is to complete our Eligibility Quiz. This brief questionnaire will inform you whether you qualify for our home purchasing programmes and assistance.

Once you have finished the questionnaire, we’ll help you locate a loan, take a course about purchasing a house, and find a REALTOR®.

2. Down Payment Assistance (DPA)

If you qualify for our programmes, TSAHC will offer you a mortgage loan and money to utilise for your down payment.

You may opt to get the help as a grant or a deferred forgivable second lien loan.

If you’re qualified, you may basically get free money to help you purchase a house. To qualify, you must have a credit score of 620 and fulfil certain income criteria.

3. Two First Time Home Buyer Programs

TSAHC’s home loans with down payment assistance are provided via the following schemes. You don’t have to be a first-time home buyer to utilise either programme!

“Homes for Texas Heroes” Program

If you’re in a hero career, this is the home financing programme for you. Hero occupations include:

Professional educators, which comprises the following full-time jobs in a public school district:

i. School teachers

ii. Teacher aides

iii. School librarians

iv. School counsellors

v. Nurses

vi. Police officers and public security officers

vii. Firefighters and EMS personnel

viii. Veterans or active military

ix. Correction officers and juvenile corrections officers

x. Nursing faculty and allied health faculty

xi. Home Loan Program

Non-Profit Homeowner Assistance Programs

The NTLA has never been about evicting individuals from their homes. Tax lien investments go directly to support schools, parks, police, and other services.

They are firm proponents of alternatives to foreclosures.

1. Piedmont Housing Alliance

At PHA, its goal is to provide housing and community development possibilities for very low to moderate income families and people.

In addition, they educate on financial literacy and management, house purchasing and homeownership skills.

Also, they advocate for affordable housing policies and initiatives. PHA counsels first time homebuyers, homeowners in financial difficulty, and renters.

Also, PHA performs a wide variety of educational programs relating to financial literacy. As well as predatory lending, fair housing, and other topics vital to the financial health of local families.

PHA provides money to aid homebuyers and homeowners in need and to assist local businesses involved in affordable and community-oriented projects. www.piedmonthousing.org

2. Neighbour Works America

Neighbour Works America is one of the country’s leading leaders in affordable housing and community development.

They strive to provide chances for lower-income individuals to live in affordable houses. Also, sustainable communities are healthy places for families to develop.

Neighbour Works America works with numerous associated capital companies to create partnerships.

Equally, they develop loan products and support financing vehicles that further increase affordable housing options nationally. www.nw.org

National Community Reinvestment Coalition

The National Community Reinvestment Coalition aim to promote equitable access to credit, capital, and banking services for low-income areas.

NCRC has evolved into an alliance of more than 600 community-based groups. Also, they encourage access to basic banking services.

In addition, they provide services to build and maintain affordable housing.

Above all, create job opportunities and vibrant communities for America’s working families. NCRC provides free foreclosure prevention and first time homebuyer counselling services. www.ncrc.org

3. Neighbourhood Assistance Corporation of America

The Neighborhood Assistance Corporation of America (NACA) is a non-profit, community advocacy and homeownership organisation.

NACA aim is to create healthy communities in urban and rural regions through affordable homeownership. www.naca.com

4. Fannie Mae

Fannie Mae is dedicated to helping homeowners stay in their homes. They work with mortgage firms and housing counsellors to assist homeowners who face difficulties. www.knowyouroptions.com

5. All-American Foreclosure Solutions

The organization focus on providing affordable housing counselling, education, assistance and advocacy.

They also offer loan modifications, short sale help, community re-investment, housing counselling, and fair housing. www.aafshousinghelp.org

6. National Foundation for Debt Management

They dedicated the National Foundation for Debt Management to promoting community education. Also, teach on money management, budgeting and proper use of credit.

Since 1999, NFDM trained financial counsellors have helped thousands of families. More so, it committed them to offer professional services.

In addition, they offer discreet services to help families and individuals who are in financial difficulty. www.nfdm.org

7. Consumer Credit Management Services (CCMS)

Since 1991, CCMS has helped thousands of families and individuals restructure their personal debt.

Also, they help families and individuals fulfil their financial commitments. CCMS works with creditors to lower your payments.

In addition, remove late charges, cut or eliminate interest and assist bring your accounts current.

CCMS offers debt and credit counselling, budget planning, debt restructuring, financial education and community awareness via seminars.

Also, they use the media and the distribution of instructional materials as means of counselling.

CCMS offers support to other community groups, chambers of commerce, employee assistance programs, as well as corporations across America. www.debt-mgt.org

8. Help Community Development Corporation (CDC)

HELP CDC is a Home Buyers Program that offers people and families the tools and expertise to become homeowners.

Also, they assist everyone to live prosperously! In addition, their goal is to create a rejuvenated community where individuals contribute to communal prosperity.

More so, they promote community wholeness and assist families to live prosperously through education, economic growth and house ownership. www.helpcdc.org

9. Debt Management Credit Counselling Corporation (DMCCC)

DMCCC is a nonprofit credit counselling organisation dedicated to educating customers on financial problems.

 Also, they offer personal help to clients who have got overextended with debt. Trained credit counsellors offer personal help through free budget counselling.

Equally, offer help through housing counselling debt management programs to reduce credit card interest rates and monthly payments. www.dmcccorp.org

10. National Financial Literacy Foundation

NFLF is a non-profit organisation committed to increasing the personal financial understanding and financial quality of life of consumers.

Also, NFLF provides bankruptcy classes, housing counselling, and education programs. http://learnfinances.org

11. Clear-point Credit Counselling Solutions

ClearPoint is a nonprofit organisation whose goal is to improve consumer health via financial education.

However, their credit counsellors assist customers to discover and addressing their financial problems through budgeting and knowledge of credit.

Also, they assist customers in learning how to establish financial objectives, prioritising debt repayments and taking effective financial decisions.

Clear-Point equally provides seminars and relationships with local banks, credit unions and companies.

Additionally, they help to ensure that consumers fulfil their personal finance education requirements. www.clearpointcreditcounselingsolutions.org

12. In-charge Debt Solutions

In-charge Debt Solutions (IDS) is a nonprofit organisation providing private and professional credit counselling.

They also provide debt management services, bankruptcy education, housing counselling and educational programs to encourage financial literacy. www.incharge.org

13. Housing Foundation of America

First established on October 2005. Housing Foundation of America, Inc. offers help for first-time homebuyers and distressed homeowners.

They also help any other requirements as it relates to workforce housing. HFA and its affiliates work every day to offer excellent help to people in need.

In addition, HFA provides homebuyer counselling, community stability programme counselling, foreclosure prevention counselling, and reverse mortgage counselling. www.mortgagegrants.com

14. Consolidated Credit Counselling Services, Inc.

Consolidated Credit Counselling Services, Inc. has provided help for over 5 million individuals to achieve the financial independence they need.

Also, they provide help for financial needs, offer information, suggestions, and solutions to help you achieve your financial objectives. www.consolidatedcredit.org

15. Dream Home Organization

Dream Home organisation Inc. was established 2008. It is a non-profit organisation that empowers and educates individuals.

Also, they provide leverages financial resources and works with the public and to achieve proud home ownership for everyone.

DHO is a not-for-profit IRS. However, they specialise in pre-foreclosure intervention, housing counselling, budgeting and financial literacy. www.dreamhomeorganization.org

Best Mortgage lender

Best Mortgage Lenders for First Time Buyers

First, there are plenty of mortgage lenders out there. So, for many first-time homeowners, it is a smart idea to work with a broker to assist you in understanding your choices.

If you’re determined on selecting a lender on your own, however, here are a few of the finest ones to consider:

1. Better Mortgage (BM)

Better Mortgage is commonly known as Better.com. Hence, it is a fully digital lender, accessible in 43 states and Washington, D.C.

BM had some of the lowest stated rates of all lenders in 2020. Also, they have provided extra advantages, including no fees and quick closing times. Also, they provide benefits on an all-digital procedure and a rate-match promise.

Better Mortgage does not provide VA or USDA loans. Neither do they provide certain other second mortgage options.

However, it won’t be the perfect match for every applicant.

2. LowRates

LowRates.com, commonly known as LowRates, is a brick-and-mortar and digital mortgage lender owned by Sun West Mortgage Company.

However, they are accessible to borrowers in 48 states and Puerto Rico.

Besides, they offer quick closing times and a range of loans, including VA and USDA alternatives. LowRates is a wonderful option for a first time home buyer.

3. Navy Federal Credit Union

Navy Federal Credit Union is a fantastic choice for service members. Also, for services members who get conventional and VA loans via the credit union.

It has limited offers for other types of loan products. However, if you’re qualified, you should be able to get an exceptionally cheap rate on your mortgage.

FAQ’s for First Time Home Buyer

As a first time home buyer, we advise you not to jump into a purchase without asking questions. However, there is vital information you gather while asking questions. More so, here is the set of questions to cross your mind as a first time home buyer.

Are you a first time home buyer if you’ve owned a home before?

You may be. But not if you presently own your own house. Many lenders and aid organisations follow a three-year rule.
 
You count as a first time home buyer if you haven’t bought a house or had your name on a mortgage agreement during the preceding three years.

What if I’m a first-time home buyer and my partner isn’t?

You may still count as a first time home buyer. Most lenders and DPA programs follow the policies of the U.S. Department of Housing and Urban Development.
 
HUD states a first time home buyer is: A person who has had no ownership in a primary home during the 3-year period ending on the date of acquisition of the property.
 
However, this includes a spouse (if one satisfies the above criteria, they are first-time homeowners). Also (if either meets the above test, they are first time home buyer). So, you should be alright.

What is the minimum income to qualify for first time buyers?

First, there’s no minimum income needed to purchase a home. Second, you simply need to make home loan instalments.
 
Moreso, how much you will earn will depend on your current debts. Also, with your down payment,s well as the house price you expect to afford.

Can I purchase a home with no money out of pocket?

Hence, it’s uncommon, but not impossible. However, you’d probably need aid from a down payment assistance program. 
 
In reality, remember to pay closing fees as well as the down payment. So, even borrowers with zero-down-payment mortgages typically need some assistance.

What’s the minimal credit score for a first time home buyer?

For first time home buyer programs, the credit score is technically 500. But that’s an FHA loan with a down payment of 10% or more. Moreover, with a 3.5% down payment, you’d need a score of at least 580.
 
Other kinds of mortgages need higher minimum scores around 620 or 640. And also some particular lenders may demand better FICO ratings than those minimums.

How much money do I really need to purchase a house?

First, minimum down payments are usually 3-5% of the buying price. Then, you need to budget and additional 2-5% of the purchase price for other home-buying costs.
 
Those include upfront fees, closing expenses, earnest money, and prepaid property taxes and homeowners’ insurance.
 
Don’t forget: Some down payment assistance programs may help with these additional expenses. So seek the finest one in the region where you’re purchasing.

Is it hard to obtain a first-time buyer loan?

However, it depends on what you mean by hard. Again, most lenders adore first time home buyer program. Also, they will do everything they can to assist.
 
Additionally, down payment and closing costs help may reduce your out-of-pocket expenses. Besides, the hard part is typically locating the perfect house for your price range. Also, by completing all the paperwork work needed.
 
However, millions have successfully purchased their own houses in the past. So don’t lose heart. Although the procedure may be difficult, it’s definitely not impossible!

In summary, purchasing a house is extremely hard. For first time home buyer programs, we should make it an Olympic event. More so, it’s not simply the paperwork procedure.

However, it’s the language, the costs and the number of individuals engaged. Although, it’s normal to consent to everything and sign everything provided.

Despite this, you may simply go through the procedure as quickly as you can. Evidently, accessing one of these options can help you purchase a house with less of a down payment.

Then you may have your own opening ceremony in your new house. I think a first time home buyer will find this article guiding. As you absorb the material, share it with your friends and family.

CSN Team.

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