There’s no time like the present
Everyone agrees, buying your first home can be an intimidating experience! There are numerous things to take into consideration, from finding the right house to financing. “What the heck is PMI?” But, being a first-time homebuyer comes with some advantages, too!
First-time homebuyers often have access to special loan programs that can assist them in getting into a home more quickly and less expensively than those who have purchased homes previously. These programs offer first-time buyers benefits such as low down payments, subsidized interest, and a limit to the fees that a lender may charge them.
Lenders usually expect homebuyers to pay a down payment of as much as 20%, which can be prohibitive for those who are trying to purchase their first home. But first-time homebuyer loans often offer a reduced down payment of anywhere from zero to 3.5% of the sale price. A down payment that low makes buying a first home much more accessible.
First-time homebuyer loans may also feature a limit on the fees that the lender charges. Like the reduced down payments, this is made possible by government mortgage insurance available to new homeowners. HUD insures your mortgage for an annual premium, reducing the risk to the lender. This results in the ability to charge lower fees and down payments while remaining profitable.
Low-income first-time homebuyers may qualify for subsidized interest programs. This means that a third party pays the interest on your loan. These programs can make your mortgage payments more affordable and enable you to pay off the mortgage more quickly. While the government is one of the most frequent subsidizers of loans, they can also be subsidized by charities, organizations, or even individuals.
First-time homebuyer programs are generally available only to people who are going to live in the home they purchase as their primary residence. The home will also have to be in good condition with no safety hazards present. And due to the fact that these programs are designed for those in need, there is a limit on the value of the homes you can purchase through these programs.
First-time homebuyers can take advantage of numerous programs to assist them in owning their first home. From lowered down payments to subsidized interest, first-time homeownership has become much more affordable. It’s important that you find a qualified mortgage lender to help you navigate this process. Contact me if you need a referral!