Owning a home is a big part of the American dream. It is such a significant part of what makes people want to come to the United States that the federal government has created a variety of first-time home buyer programs to make the process of owning a home easier. If you are getting ready to buy a home for the first time, then you will want to take a look at some of these programs that could save you money and help you to get approved for your mortgage.
The Federal Housing Administration (FHA) is not a money lender, but it does back a certain amount of first-time home buyer mortgages each year through qualified lenders. The FHA insures the loan to protect the lender in the event the home buyer defaults. These loans have added insurance that raises the costs a little, but it is definitely a great way for first-time home buyers to fund their purchase.
If you want to buy a farm or a home in a rural area, then you need to look into loans backed by the United States Department of Agriculture. There is a down payment required, but the payments for the life of the loan will remain the same. As long as you have a credit score of at least 640, then you can check into a USDA loan for your first home purchase.
If you are currently serving in the military or retired from military service, then you will want to look into the Veterans Administration (VA) loan program. This program is set aside specifically for current and retired members of the military, and it offers some significant benefits. You do not need a down payment, you do not pay any mortgage insurance if you have no down payment or offer a down payment that is less than 20 percent of the selling price, and if you get into financial trouble the VA will step in and talk to your lender for you.
Good Neighbor Next Door Program
The Good Neighbor Next Door Program is a home buying program created by the Department of Housing and Urban Development (HUD) specifically for police officers, teachers, firefighters, and EMTs. Through this program, qualified buyers can buy homes for 50 percent off the selling price if those homes are in designated revitalization areas. The program wants to put emergency personnel and teachers into areas that are impoverished or developing to help attract more investors into the area.
When the time comes to buy that first home, you should know that you have plenty of options to help you make your purchase. There are many first-time home buyer programs you can use to get a discounted interest rate, an easier approval process, and the kind of funding you need to make your dream of home ownership come true.