There Is Government Assistance for First Time Home Buyers

Buying a home is the largest purchase you will ever make and it stands to reason you want to get it right the first time. Things like your credit score, income to debt ratio, earnings cap and what cash you have on hand are only the first things you have to think about. If you are considering buying a home for the first time, you are probably worried about saving enough money for the downpayment. Loan fees and closing costs can cause worry as well. You wonder if your credit card debt can be rolled into the loan in order to pay it off and afford you more money to repay your loan. Worrying about the interest rate can cause some sleepless nights, also. However, for the first time home buyer, there is government assistance that can erase all that worry.

The two major government lenders, FHA and HUD, have many attractive offers to help with government assistance for the first time home buyer. With lower interest rates as well as ten, fifteen and twenty year fixed rate mortgages, and better credit allowances and no income cap as opposed to conventional loans’ interest rates and higher credit requirements added to a maximum income requirement, these government lenders are a good way for the first time home buyer to go.

There is dowmpayment assistance as well for the first time home buyer. HUD helps each state with funds with which to aid the first time home buyer. With a traditional loan you can borrow up to 80% of the purchase price, but you must pay down at least 10%. With downpayment assistance, if your income is not up to the cap of the conventional lender nor your credit score high, you receive assistance for the lower downpayment amount, usually 3%. Government assistance for first time home buyers can also come in the form of grants. These can range up to 20,000.00 towards downpayment on a home and closing costs. Grants are offered regardless of income and credit score and don’t have to be repaid.

Realizing that facts and figures are going to war inside your head and you need a clear idea of what to do next, it would be a good idea to check out the government assistance websites and compare prices to conventional lenders. Find out, for instance, what the annual percentage rate is and what the ceiling is for your town, city or area. Compare income caps, available funds rules, credit score requirements and closing costs. Read the forums and ezines for tips and tricks on how to get the lowest interest rate or the best long term mortgage payment. Study the worst case scenarios like your mortgage being sold and find out how to refinance it.
Buying a home doesn’t have to be hard, though, because there is government assistance for first time home buyers. Let them walk you through the process of making one of your biggest dreams come true and then enjoy your new home.