According to a recent survey by rental survey, about 80% of millenials who rent would wish to own their own homes but find it to expensive. That is a huge number no matter how you look at it.
Unfortunately, most people do not know that there are numerous grants and home buyer programs that are designed to offer financial help with mortgages. Unless you look into these programs, you may not whether you qualify for any of these programs.
To help you in your journey getting Plantation home loans, we have highlighted nine different programs that are designed for the first-time home buyer.
Kloze helps first-time home buyers get a mortgage at affordable rates.
In case you have not heard of it, an FHA loan is a mortgage that is insured by the Federal Housing Administration. The FHA is an agency within the United States Department of Housing and Urban Development, also known as the HUD.
The purpose of the FHA insurance is to boost the confidence levels of lenders. Basically, this means that in the event the borrower (that’s you) defaults on their mortgage payments, the lender will not incur any loss.
Usually, FHA type loans are characterized by very competitive interest rates. This includes smaller down payments that are coupled with lower costs compared to conventional home loans.
If you happen to have a low credit score of say about 580, you might qualify for a mortgage as long as you are willing to make a down payment that is 3.5% of the purchase price.
In case your credit score is less than 580, you might still be eligible for an FHA loan, however you will need to make a larger down payment that is not less than 10% of the home’s purchase price.
One of the lesser known government programs that offers assistance for home financing is the U.S Department of Agriculture, which has a homebuyer assistance program.
The USDA loan main focus are homes that are located in particular rural areas. However, you do not need to run or buy a farm in order to eligible.
Just like with the FHA loan, the USDA loan is guaranteed by the Department of Agriculture.
One of the advantages homebuyers stand to benefit from include making no down payments on the property they are buying.
The other advantage is that the payments are fixed.
If you have a credit score of 640 and higher you can expect streamlined processing. However, with a credit score that is less than 640 you can still get the USDA loan, however, you can expect your lender to ask for documentation that offers a good indication of your payment history.
You need to know that there are income limitations that might mean homebuyers in certain regions do not qualify. To know if you are eligible for Plantation home loans, get in touch with us.
This type of loan is offered by the U.S Department of Veteran Affairs and is targeted towards, veterans, surviving spouses as well as active-duty military members.
How the VA loan works is that it guarantees part of the borrowed mortgage. This allows lenders to offer some special features.
Lenders offer competitive rates on VA loans. In addition, no down payment is required.
With a VA loan you are not expected to pay for PMI, that is, Private Mortgage Insurance. In fact, you do not even need a minimum credit score to qualify for a VA loan.
If it becomes difficult for the borrower to make payments on the mortgage, the VA can always step in and negotiate with the lender on behalf of the borrower.
Good Neighbor Next Door
This home loan program is offered by the Department of Housing and Urban development and is targeted towards firefighters, emergency medical technicians, law enforcement officers as well as teachers who teach pre-kindergarten through 12th grade.
With the Good Neighbor Next Door loan program, a borrower can receive up to 50% discount on a home’s listed price in particular regions that are known as ‘revitalization areas’.Read more about this program by clicking here.
Freddie Mac or Fannie Mae
These are government sponsored entities that work hand in hand with local lenders. The mortgage options that they offer are meant to benefit moderate- and low-income families.
When a home loan is backed by either Fannie Mae or Freddie Mac, lenders are able to offer home loans that have competitive interest rates and accept down payments that can be as low as 3% of the purchase price.
If you happen to be a first time home buyer, Fannie Mae will offer you homeownership education via their HomePath Ready Buyer program.
If you would like to find out more about grants and Plantation Home Loan programs that are available to you do not hesitate to get in touch with Kloze.