4 Factors That Will Help People Buy Their First Home
4 factors that will help people buy their first home
Money is the major issue that stands in the way of first-time homebuyers. A survey reveals that nearly 80% of millennial renters want to buy a home, but most of them cannot afford it. Many first-time homebuyers do not realize that there are various grants and programs offer financial help, and they may also be eligible for other assistance programs. Along with information about financial aid, this article also gives additional information about buying a home at low mortgage rates and tax benefits on home loan repayment.
What are the grants and programs offered?
Here is the list of grants and programs for first-time homebuyers designed to help people get a great mortgage and buy their dream home.
- FHA loan: The Federal Housing Administration insures this mortgage. The FHA is a bureau under the U.S. Department of Housing and Urban Development. It provides complete coverage and offers a layer of protection. FHA loans come with the best interest rates, and lower down payments and closing costs than conventional loans. A potential homebuyer should have a credit score of 580 or above to be eligible for an FHA loan. Buyers with lower credit levels are also eligible for the mortgage but the down payment would be a minimum of 10% of the mortgage amount.
What are some grants offered by the government?
- Fannie Mae and Freddie Mac are two government-funded bodies.
- They work with local mortgage providers to offer loan options that benefit low and moderate-income families.
- Banking with Fannie Mae and Freddie Mac, first-time homebuyers can get a loan at competitive interest rates, and get a down payment option as low as 3 percent of the purchase price.
- Fannie Mae also educates first-time homebuyers by offering HomePath Ready Buyer™ program. Upon completing this course, homebuyers are eligible for a 3% closing cost assistance.
What are some local grants and programs available for first-time homebuyers?
- To be on the safer side, it is always good to apply for a mortgage at the federal government bank.
- There are additional grants and programs provided by various state and cities to help first-time homebuyers.
- Grants and programs vary from state to state.
- Before approaching the bank, check the state’s community website for details on housing grants and programs provided in your area.
What are the additional benefits buyers can claim on loans?
- First-time homebuyers can claim tax benefits for the interest they are paying.
- Making principal repayment also helps in tax deduction.
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