4 Federal Programs that Can Help First Time Home Buyers
Buying your first home can be one of the most exciting and triumphant landmarks of financial success ‐‐ but getting there oftentimes requires tremendous dedication and sacrifice. Fortunately, Uncle Sam may be willing to help. Check out this list of four important federal programs that could give you the boost you need to finally turn your dreams of homeownership into reality.
- 1. Federal Housing Administration home loan guarantees. If you are approved for this FHA program, the government promises to help reimburse your lender in case you default. This does not get you off the hook for the financial problems a default would create ‐‐ but it does help make lenders a bit more comfortable giving loans to low-income families with poor credit history. If making a down payment is going to be troublesome for you, this program could be perfect, as it allows you to pay as little as 3%.
2. US Department of Agriculture home buyer assistance. This program offers reimbursement guarantees to lenders in a similar fashion to the FHA program detailed above. The difference? This program is geared toward people purchasing homes in rural areas. You don't have to be a farmer ‐‐ all you need to do is live in a qualified rural area and meet a few other simple USDA requirements.
3. The Good Neighbor Next Door program. Originally created for teachers only, this US Department of Housing and Urban Development program now offers 50% home discounts to Law enforcement officers, pre‐Kindergarten through 12th grade teachers, firefighters and emergency medical technicians. To qualify, the home you are purchasing must be located within an area targeted for revitalization. Visit the HUD website for more info on this ambitious housing and redevelopment program.
4. Department of Veterans Affairs loans and housing assistance. Veterans can qualify for a wide range of housing programs. If you or a close relative has spent time in the US Military, visit the US Department of Veterans Affairs for more info.
Going through with your decision to purchase a house? Check out this Madison Monroe and Associates blog article on maintaining the value of your home!