Many people find that the first time that they purchase a home can be a challenge. Massive piles of paperwork to fill out. Sometimes you think you need to get a master’s degree in finance to learn all of the terms you’ll need. You’ll have closing costs that can add up to larger amounts than you were planning on. Purchasing a home is a big financial step.
But 74% of millennials think the largest hurdle to buying their home is saving for the down payment.
Here are a few grants and programs that may help you.
FHA loan.
With an FHA loan, the Federal Housing Administration insures the mortgage lender in case the buyer defaults on the mortgage. This typically requires a smaller down payment, and comes with competitive interest rates.
US Department of Agriculture loan.
This is similar to FHA but there may be no down payment required. Credit scores need to be a little higher than with FHA. And you don’t need to purchase a farm.
VA Loans.
This is for service members, veterans and surviving spouses. It allows them to purchase the homes with no down payment, the VA guarantees part of the loan to protect the lender.
Good Neighbor Next Door.
This program is sponsored by HUD. It helps teachers, EMT’s, Fire Fighters and Law Enforcement Officers purchase a home in special regions known as revitalization areas at a discount.
Fannie Mae / Freddie Mac.
These are mortgage options for low and moderate-income families. Income restrictions apply.
FHA 203(k).
This is for people who want to purchase a handyman special and fix it up. The FHA looks at the value of the property after renovations are complete. It lets you borrow the funds needed for the project and include them in your mortgage.
Local First Time Buyers Grant’s.
Don’t get too excited these grants. These typically come with income restrictions. If your income is low enough to qualify, unless you have a large down payment you don’t have the income necessary to qualify for the mortgage.
Don’t get too excited these grants. These typically come with income restrictions. If your income is low enough to qualify, unless you have a large down payment you don’t have the income necessary to qualify for the mortgage.
If you want more details about any of these programs, speak with a mortgage professional. We can refer you to a good one if you would like.