First-Time Home Buyer Programs: What You Need to Know
It can be overwhelming to buy a house for the first time. Get the information you need to make an informed home-buying decision by learning about first-time home buyer programs and what criteria need to be met.
What are First-Time Home Buyer Programs?
First-time home buyer programs are financial incentives made available to potential purchasers who are looking to purchase a home for the first time. These programs can have federal or state government involvement and are designed to help buyers secure the necessary financing to get into a home with lower out of pocket costs.
Benefits of First-Time Home Buyer Programs
The main benefit of these first-time home buyer programs is that they can help reduce the amount needed to cover the down payment and closing costs. Many government programs are available that offer various incentives such as closing cost assistance and down payment assistance, making it easier for first-time buyers to enter the housing market. Additionally, even if buyers do not qualify for one of these government programs, numerous lenders offer special rate mortgages with little or no down payment.
What Do You Need to Qualify for a First-Time Home Buyer Program?
The requirements for a first-time home buyer program vary from state to state and are based on your income, credit score, and other factors. Generally, you must meet certain criteria in order to qualify:
- Be a first-time homebuyer�that is, not having owned a primary residence in the last three years.
- Meet income requirements that vary depending on the state.
- Complete a home-buyer education course.
- Have a credit score of at least 620.
- Have enough money saved for closing costs or access to an assistance program.
Where Can I Learn More?
If you're interested in learning more about first-time home buyer programs, your local housing agency is a great place to start. In addition to providing information on available programs, they can connect you with experienced lenders who can guide you through the process and answer any questions you may have. Additionally, if you are a veteran of the U.S. Military, be sure to look into VA home loans, which offer several unique benefits compared to traditional mortgages. To learn more, contact your local housing agency today.