Loans for First-Time Buyers
Buying a home for the first time is no easy feat. If you haven’t saved or don’t have solid cash flow, it might sound like you don’t have a lot of options for getting into a home. However, there are ways to help you get into your first home.
It’s time for first-time homebuyers to explore and see the vast possibilities that life has to offer over time. It's important that you have in mind the following loan tips and types and weigh out which one will maximize your benefits over time.
Down Payment loans
Down payment is the amount of cash that is to be paid when buying a new home. This is usually required when dealing with mortgages. It’s a common belief that first-time homebuyers will need 20 percent of the down payment or even more to get a mortgage.
However, this is just a myth and you will find most lenders have a down payment for as little as 3 percent. All you are required to do is to accept a form of down payment assistance (DPA) and you are set to go.
Government-Backed Loans
It may be that you have a poor credit score or don’t have a large sum of money for the down payment. It is understandable because we have different circumstances and levels of income. When in this type of situation, then looking for government-backed loans is your best bet.
You need to know that the government is a government revenue machine. It doesn’t hurt them when they give back to the community. This means that their level of risk is lower. Why? Because most of the money they are lending comes from society and not their own pockets.
It makes sense then to lend money from this source because it carries less risk to the lender and has a lower interest rate on you.
Seek help from charities and non-profit organizations
It might seem that you are just looking for help or in a bad place financially. You shouldn’t give up; there are loans that you can take advantage of. Volunteers are out there building homes and charities assisting those with moderate to low incomes.
You will be offered both educational and financial muscle to bolster your chances of buying a new home. However, you should know that nonprofits require income qualifications. This dictates who will get help and who will get neglected.
Employer-sponsored Programs
Some employers are now adopting housing incentives in their corporations to cover down payments and closing costs of mortgages. You should know that not all employers put this on the table. Your employer may offer a forgivable loan, overtime, or cover the closing cost of your mortgage.
The terms and conditions stated in the programs can vary from company to company. This is because the effort is usually combined between a state and the company. The situation of both parties varies so don’t compare to what your friend got from their company.
It's key that you set up a meeting with your boss and HR representative and set up a meeting to negotiate offers accordingly.
Conclusion
At Chris Price Realty, we believe that you should not have a difficult time finding your first-time home. With our expertise and experience, we can advise the way you should move forward. On our blog, you will find more information concerning real estate. In addition, you can use our loan mortgage calculator to make an informed decision.