Loan Programs For Low-Income, First Time Home Buyers
Buying your first home can be a daunting experience, especially when you think about saving up enough to cover the down payment for the home. If you are struggling to make ends meet each month, you may think home ownership is out of reach. However there are options available to help you get into your first home. Here are some things you may want to consider.
An FHA loan is available to help first time home buyers who do not have a down payment saved up. The down payment is usually around three percent as opposed to twenty percent of the loan. You will still have to pay PMI but this option may make home ownership possible much sooner.
A USDA loan works similarly to an FHA loan, but it focused on homes in rural areas. You will need to have a ten percent down payment for your home, and meet specific income eligibility requirements based on where you live. This is a good option to help you prepare to purchase a home.
Good Neighbor Next Door
This program allows police officers, teachers, EMTs and firefighters to purchase the homes at discounted prices in struggling areas. This can help to turn a neighborhood around and opens the door for home ownership for people that help to better the community.
These loans are available to help doctors purchase their first home. According to the New York Times, the down payment is waived as well as the PMI when the doctor is a resident. This can help since many doctors who graduated with a lot of student loan debt be able to purchase their first home much sooner.
Many counties and cities throughout the country offer small incentives to help lower-income families purchase a home. The programs vary by location and may help with closings costs or down payments. You can inquire with your county to see if assistance is available for your situation.
Habitat for Humanity
Habitat for Humanity is a program designed to help low-income families be able to purchase a home. The program works by having the family build sweat equity. They work on the home as it is built to help cover the down payment. The payments are reasonable for the area. It is an intensive process to qualify for this program, and they will offer counseling to help you be sure you can afford the home. If you decide to sell, they have the option of being the first buyer on the home.
Even if you have a lower income and you think that buying a home is out of your reach, there are programs available to help you, so talk with a home loan company, such as Dynamic Mortgage Concepts Inc, about any of these options, or reach out to your community to find the right path that will lead you to your first home.