First-Time Homebuyer Assistance – There are payment assistance programs in every state for the first-time homebuyer. For most families, coming up with the traditional down payment of 20% is often the largest hurdle, and that’s why there is help available. There are government agencies available to provide special programs to help people overcome these obstacles.
As a potential first time homebuyer, you know the sacrifices made to save sufficient money to make a down payment. For some, it seems impossible to even begin to save enough cash without some form of help, much less saving that money in the time necessary to take advantage of today’s low mortgage rates. Most investors say that now is the time to own property.
Not all the programs require that you be a first time home buyer but many do, especially to receive down payment assistance or tax credits. Most programs define the term as “not having owned a home in the last three years.” Even if you were one of the first casualties of the housing meltdown you may qualify for one or more of these programs, as long as your last three years of tax returns do not show the interest or property tax deductions.
Not everyone qualifies for these programs as some have maximum income limits and property eligibility requirements. The common thread of these programs is they have loan down payment requirements (3.5% or less) or can be combined with down payment assistance and have more flexible qualifying guidelines than conventional loans with 5% down payment.
FHA – First time home buyer program since 1934, 3.5% down payment – may be combined with down payment assistance programs. No income limits.
VA – ZERO down payment for qualified veterans and active duty military. No income limits.