What Are The Best First Time Home Buyer Mortgage Programs?
Are you looking to buy a home, but your finances are too tight and buying one seems to be a distant dream? Well it’s not so distant anymore and you don’t even need to make huge savings to get the funding. There are several first time home buyer mortgage programs that provide funding and make the housing more accessible to common folk of USA.
Some of the top programs that can help you buy a home for first time are FHA, VA and USDA. Here are the key features of these loan programs.
FHA For First Time Home Buyers:
FHA is the friendliest mortgage program for first time home buyers. It is backed by Federal Housing Administration and requires just 3.5% down payment to qualify for the loan. However, there is a little variation in the amount of down payment for borrowers with different credit scores.
The borrowers with a credit score of 580 or above need to pay 3.5% to qualify for the loan.
Borrowers whose credit score is anywhere between 500-579 are required to pay to at least 10% down payment to get the loan.
VA Loan For First Time Home Buyers:
VA is one of the unique first time home buyer mortgage programs that provide hundred percent financing. However, this loan program is only limited to those who served/still serving in US military.
USDA along with VA is the only loan program for first time home buyers that provide hundred percent financing. Or in other words, requires zero down payment. However, this program also has some restrictions as it is only available to those looking for a property in a rural or suburban area.
These programs allow you to make upgrades to your home or buy a property that needs up gradation. Energy Efficient Mortgage Program and HUD 203(k) Loans are two of the “go to” programs for the majority of borrowers in this regard.
Energy Efficient Mortgage Program:
EEMP comes with extra funds to enhance green features of your house. This program typically allows your lender to extend the loan limits and does not require any new appraisal costs.
HUD 203 (k) Loan is backed by FHA and particularly designed for buyers who are ready to take on a fixer upper. A unique feature of this program is that it considers the post-repairs value of property and provides extra funds for repairs as part of regular mortgage.
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Buying a home is one of the most significant financial steps of your life and you must seek for the right advice and right means to finance it. To achieve right financial assistance, first time home buyer mortgage programs discussed in this article are the best option to go with. Determine your requirements and pick one wisely.