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If you've been dreaming of buying a home or have started looking at houses and mortgages, you've likely seen ads and information that directly targets the first time home buyer. Buying your first home is a significant milestone and one of the most financially beneficial things you'll ever do, and there are some mortgage programs designed to help first time buyers succeed in this life changing endeavor. If you're buying a home for the first time, you should know what programs and perks are available to you so you can strike the best possible deal. Even someone who has purchased a home in the past (but is now a renter) may be able to qualify for some of these plans.
On the surface, its simple -- a first time buyer is one who has never owned a home or had a mortgage. For some programs, though, a first time buyer can also be someone who has not owned a primary residence in the past three years. If you fit either of these categories, you should check out the programs offered for this increasingly large group of buyers.
First Time Buyer Mortgage Perks: Just about every mortgage company now offers some kind of perk or benefit for first time buyers; talk to your real estate agent to learn more about your options as you shop for your home. FHA, VA and USDA loans are particularly good for first time buyers, since they offer low down payments and more relaxed credit requirements.
Grants: The Federal government and both state and local governments offer first time buyers assistance in the form of grants. The idea behind these grants is to bolster the buyer's ability to make a purchase, often by helping them out with a downpayment. Grants vary by location and do not have to be paid back; they are designed to help first time buyers get past one of the big barriers to ownership -- that 10 or even 20% downpayment. New Jersey has a grant program for first time home buyers; this plan is replicated by most other states as well. Search your state or city name and "first time home buyer grants" to learn more -- or better yet, work with an experienced real estate agent and get the scoop directly from them.
Good Neighbor Next Door: This plan can help you save up to 50% of the purchase price of a home if you are a civil servant - police officers, firefighters, teachers and others who serve the community can benefit from this national program, with details seen here. Because of the nature of the loan, most borrowers are first timers and can purchase homes they would otherwise be unable to afford.
HomePath: Fannie Mae offers this program for first time buyers; it can save you up to 3% on your closing costs. You'll need to attend a class, must be a true first time buyer and purchase a qualifying property to save. Other perks include a first look at foreclosed properties as they arrive on the market, making this an ideal program for areas with a lot of competition for buyers.
The time to learn about first time home buyer benefits is now -- before you make a purchase. Once you have a mortgage, you no longer qualify and you could miss out on some substantial savings. Get in touch today if you are buying your first home -- we can help ensure you know about all the ways you can benefit and help walk you through the ownership process, every step of the way.
