Financing your home purchase as a first-time buyer can be intimidating, especially if you’ve been having trouble saving up for a down payment. However, there are a variety of FHA loan programs and grants available to first-time homebuyers that make purchasing your dream home possible within your budget. Here are just a few of the many options you can take advantage of when you’re buying your first home.
FHA loan programs for first-time buyers are unique in that they allow buyers to offer a lower down payment than most traditional mortgages. To get an FHA loan for a mortgage with a down payment as low as 3.5%, the borrower needs a credit score of 580 or higher. Those with credit scores between 500 and 579 must make down payments of at least 10%. Since the limits are easier to meet, more people are able to become homeowners through this program.
While these loans are not available in every part of the country, eligible homebuyers can purchase their home without a down payment. USDA loans are designed for low-income to middle-income buyers in more rural areas, but as much as 97% of areas throughout the country can qualify as “rural” by USDA loan standards.
HUD First Time Buyers Programs
While HUD programs will vary depending on location, they can be incredibly useful for first-time buyers in need of down payment assistance or help with closing costs. Certain grants are only eligible in special circumstances, so be sure to do some research before you count on these being available.
If you are a retired veteran or are currently enlisted, VA loans are one of the best programs available for you to finance your home. These loans are usually some of the most affordable, as they require no mortgage insurance and no down payment. If you qualify, this can help you get into your first home at an affordable price.
First-time buyers can gain the assistance they need for their down payment and other associated costs through a variety of programs tailored to their needs. For more information on FHA loan programs and other grants to make your home-buying more affordable, contact Megastar Financial today.