Where can I find a list of programs for first time home buyers?
November 9th, 2009 by admin
I’d like to buy my first house but trying to save for the downpayment is really difficult. Is there a list of programs out there for first time home buyers?
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Check with your local HUD office, FHA, the VA, and check with banks like Wells Fargo, and I think BofA still has a first time buyers program.
All of these have first time buyers programs.
Talk with a lender. Many states have “bond” money for first time buyers. Usually they only require 0% to 3% down.
I highly recommend using the Genesis foundation with a FHA loan. This program allows the seller to pay your downpayment of 2.25% AND the closing costs. Your lender should know about this.
Step #1: Look into First Time Buyer programs.
Call the county, town and municipality where your interested in living and ask.
Step#2: Read ALL the literature you get AND follow the directions – step-by-step.
If there isn’t any First Time Buyer program:
Your first step should be to get pre-approved for the mortgage.
Arrange for an appointment with a loan officer at a savings & loan or a federal credit union. These lenders tend to have lower fees and rates than mortgage companies or full service banks.
Bring all the applicable information about any open and closed loans.
You should be as honest as possible.
Ask about a 30 years or longer, fixed-rate, positive amortization, no pre-payment penalty, open-end mortgage.
This means:
You have 30 years or more to pay the mortgage.
It has an interest rate which never changes through the term of that mortgage.
Some of the payment will always be applied to the principal amount of the mortgage
It can be paid off at any time without any penalty.
And it can be paid off at any time.
Step #4: After getting pre-approved, take a ride through those areas where you can comfortably afford to make those mortgage payments.
Make notes of the “For Sale”, “Sale” and “For Sale by Owner” signs in those areas. Ca;; those people to make appointments to see those properties.
IF you meet an agent you feel comfortable working with, continue working with that agent. He/She should be able to get you through the great majority of those properties you’re interested in seeing.
Thanks for asking your Q! I enjoyed answering it!
VTY,
Ron Berue
Yes, that is my real last name!
You can also go to you city’s website.
You need to contact a lender you trust maybe someone you know or a referral from someone you know. HUD has a great first time buyer program out there which may/may not help you with closing costs and they have 100% financing upon approval but………The reason why you contact a lender NOW instead of doing a bunch of homework is because you need someone to run your credit and see if you need to fix anything and make sure you can even qualify for a loan. If you do then….you take a copy of your credit report and shop lenders. Then you can choose who you give your business too and also I am sure you can get them to compete against each other for you business. But….don’t tell the lender up front because no one wants to give you your credit report and then not get the deal. Good Luck!!
It depends where you are looking for a home but you may want to check out the USDA, they have a wonderful program for first time home buyers and you only have to come up with a very small amount of money.
Some locations have low income assistance programs like SHIP here in Florida.
Try your local town hall. Some citys have special programs for helping with downpayments for 1st time home buyers.
Also I would recommend looking into getting an FHA loan. It requires a smaller downpayment anything from 0-3% of the pruchase price. It is also good if you have less then perfect credit.
Hope this helps!
There is not federal programs, but each state has different programs. Check on-line First time home buyers for you state.
They should have some funds available.