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First Time Home Buyer Programs You Should Be Aware Of

    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.


    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.