Help for first low-income homebuyers

Buying a home is not something unattainable and those who do first have some advantages. If you did not buy or you were interested in a home in the last three years, you may qualify for rates lower interest rate or less fees. Also, you can qualify for a grant.

FHA

The Authority Federal Housing (FHA), also known as HUD, allows homebuyers for the first time purchased with a down payment of 3.5%.Most mortgages require a minimum down payment of 20% unless the mortgage is insured. Any lender can offer FHA loan.

Other amounts

Grants are available for low-income buyers by state and are not necessarily limited to the purchase of a first home. According Down Payment Solutions, “you must meet the requirements of average income established in your area. ” Some grants cover the down payment and other costs, which are then returned when the house is sold.

Other options

The VA program is limited to eligible veterans and reservists and allows low-income buyers made no down payment or closing costs. The Rural Housing Service Department of Agriculture insures mortgage loans in rural communities, allowing a lower down payment. None is limited to first time buyers, but both have specific restrictions.

Advice

Homebuyers can qualify first for Assistance Act for Workers Homeownership and Business enacted in 2009, which extends the tax credit up to $ 8,000.