Purchasing a home can be really expensive. In fact, it might be the most major purchase you will ever make in your life. Although it costs a lot, it is an investment. Housing is one of the basic needs of a person and you can’t really beat having a place you can call your own.
Thinking of the home buying expenses can be a little bit daunting but proper guidance and a bit of research before diving in can really help you. With that said, there are programs that can assist you in buying your first home.
In this article, we will talk about the programs that help in the financial aspect of home buying. So what do they help you with? Generally, they give aid with the down payments and the closing costs.
Let’s discuss some of the best programs that offer the best grants and loans. For more information on home, buying assistance does check out https://www.homelendingpal.com/ai-powered-mortgage-advisor/.
Fha Loan
This program is backed by the Federal Housing Administration. This may be the program for you if you might with the down payments and if you have a low credit score. With that said, the grant they offer is that they require a lower minimum credit score and a lower down payment. They only require a minimum credit score of 580 and a 3.5 percent down payment. They can also consider lower credit scores such as 500 to 579 but it requires a slightly higher down payment of 10 percent.
Usda Loan
This on the other hand is blacked by the United States Department of Agriculture. This helps those who want to purchase homes in rural areas. They help home buyers by giving them up to 100 percent financing. They are mostly focused on helping those who earn low to moderate incomes and they typically require a 650 or higher credit score to qualify.
Va Loan
The VA loan is backed by the United States Department of Veterans Affairs. This program aims to help active-duty military personnel/officers/members, veterans, and their families. They help by offering low-interest rates and they do not require a down payment. There is however a funding fee that will be collected monthly along with the loan costs. Although qualified members may be exempted from this fee.
Good Neighbor Next Door
Another government-backed program. This is backed by the United States Department of Housing and Urban Development (HUD). This program aims to provide housing for law enforcement officers, firefighters, emergency medical technicians, and pre-kindergarten through 12th-grade teachers. The benefit is that the program can give a discount on a home listing of up to 50%. If you choose this program, there is a contract that you will have to stay in the house for a minimum of 36 months or 3 years.
Fannie Mae Or Freddie Mac
This program is a conventional loan. Conventional loans aren’t backed by any government organization or office. Those who have higher credit scores can apply to this program. You will need a credit score of 620 or higher. Financial and credit history and debt-to-income ratio are also taken into consideration. The benefit is that they require a low downpayment of 3 percent.
These programs are surely a great help to those who qualify for it. It definitely helps buying a home become more affordable. A home is essential that each and everyone must have but it can be quite hard for some to acquire one. So it’s really nice to see that programs like these provide options and assistance to those who need it the most.