4 first-time home buyers’ loan programs
Buying a home is a dream for most of us, and it is hard to get one. From the tedious paperwork to the people and fees involved, there are tons of important things that go into buying a home. Additionally, if you’re a first-time home buyer, there is a whole list of queries. But before you jump to conclusions, here are four of the loan programs that can benefit first-time home buyers. Read on!
First-time home buyers’ loan programs
FHA
The Federal Housing Administration (FHA) is one of the agencies within the U.S. Department of Housing and Urban Development. This is a good loan option for first-time home buyers. Moreover, the FHA program is also beneficial for those who have a shaky credit history.
The FHA assures a portion of home loans that broadens the acceptance standards of the lenders. By applying for FHA, borrowers can qualify with as low as 3.5% down payment.
USDA
The U.S. Department of Agriculture has a home buyers assistance program. To be eligible for this program, you don’t have to live on a farm. The USDA program for home buyers’ assistance specifically targets rural areas and provides for 100% financing. The program also offers lender mortgage guarantee.
Moreover, there are income limitations that vary as per the region.
VA loans
The active-duty military members, veterans, and surviving spouses are offered home loans by the U.S. Department of Veterans Affairs. These loans offer viable interest rates, and you won’t even need down payment for buying the home. The VA loans guarantee part of the loan, which helps lenders provide special loan features.
In order to be eligible for the VA loan, one does not need a minimum credit score or is not required to pay for private mortgage insurance. If in any case there is difficulty in making mortgage payments, the VA negotiates with the lender on your behalf.
Native American Direct Loan
The Native American Direct Loan program has been helping the Native American veterans and their spouses buy homes on federal trust lands. Once an individual is eligible for the Native American Direct Loan, there is no need of a down payment or private mortgage insurance. In this case, the VA serves as the lender. If you choose the first-time home buyer loan, you get a fixed-rate mortgage for 30 years and low closing costs. So, if you’re eligible, this is one of the preferred first-time home buyer loan program options you can choose.
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