Buying your first house is a milestone that many will encounter, but few prepare. Those who know it’s coming will save up for that special day. All others might prefer to wait for the time to be right. When the time is right, you don’t want to lose all of your life savings to a money pit.
Finding assistance to purchase you first home can vary on many aspects of your life.
You may have a unique profession, taken part in a civil service, or need a mortgage that manages
your low-income status. Here are just a few specific services you can turn to for help in financing
your new home.
FHA Loan
An FHA loan is essentially insurance for your mortgage. It is offered by the
Federal Housing Association to aid first time home buyers.
In addition to steady employment and legal U.S. citizenship, borrowers must maintain
a credit score within the range of 500-580. Those with a 580 credit rating to put down a
3.5% low down payment.
USDA Loan
Some may work hard to make farming their chosen profession, but their current income
doesn’t match the starting costs.
The U.S. Department of Agriculture has a home loan program that fulfills the specific
need for securing rural property. A USDA loan-or, the USDA Guaranteed Housing Development
Loan Program- offers zero down payment mortgages. Monthly premiums apply, but can be adjusted
if your credit score is above or below 680.
Energy-efficient Mortgage
Owning an energy-efficient home can be costly to buy, much less maintain. Now, there’s
a government sponsored loan that can enable you to budget energy efficiency.
EES loans take the burden out of making a hefty down payment on a “green” home. The
premium for the loan is rolled into the monthly fees for your primary one.
VA Loans
Active-duty military, veterans, and their families can have peace of mind thanks to the
U.S. Department of Veterans Affairs.
VA loans require no down payment and credit scores aren’t necessary as long as you or loved
one fit the criteria. Difficulties with mortgage payments can be negotiated by the VA.
Good Neighbor Next Door Program
The Department of Housing and Urban Development’s “Good Neighbor Next Door Program”
benefits full-time teachers, firefighters, law enforcement, and medical technicians.
Qualified professionals can purchase HUD properties for a low, $100 down payment.
These HUD homes are often located in “revitalization areas.” Applicants are encouraged to get an
FHA loan for partial financing. If you qualify for a VA loan, then you could get 100% financing.
Local Grants
Searching NJ real estate could bring up dozens of housing programs applicable to that state.
You should go to your state government’s official website for options that are specific to your area.
HUD Approved Counseling Agencies can be found in every state. Your local agency may provide
you with pre-purchase counseling and loan payment management. Just go to HUD’s website to find
a location in a city or town near you.
