You’ve always wanted to own a home. You’re tired of renting and dealing with landlords, and you crave a home that you can call yours. You want to paint the walls, made additions and install wood floors without asking for permission. It’s finally time to purchase your first home, but what options are available to you?
First-time home buyer programs are one way that young couples and previous renters can finally purchase their own home. A house is often a large undertaking regardless of one’s financial situation, and since buying a home is such a huge decision, first time home buyer programs can make the entire process less painless.
Most first-time home buyer programs are facilitated through banks and credit unions, though they can also be accessed through your real estate agent or broker. The specifics of a first-time home buyer program vary depending upon the lender and the applicant, but here are some of the more common benefits:
1. No Credit Checks
Most first-time home buyer programs advertise no credit checks at the start of the process. Although your credit score will become an issue once you’ve found a home and decided to buy, you can get pre-approved without one at the start. Also, bad credit or no credit circumstances will be less of an issue for first-time home buyers.
2. Greater Term Selection
First-time home buyers can usually choose between 10-, 15-, 20-, 25- and 30-year mortgages, all of which can be obtained at a fixed rate or an adjustable rate.
3. Leniency for Past Bankruptcy
In some cases, first-time home buyer programs can also be applied to people who are starting over again after a divorce. Past bankruptcy may be overlooked if there is a solid explanation for financial troubles. Since many people do file for bankruptcy after divorce, first-time home buyer programs can help them to get back on their feet.
4. Rate Lock Option
Most first-time home buyer programs offer a rate lock option, which means that they can be guaranteed a fixed interest rate for a specified period of time. This is invaluable to people who are just starting out, and need carefully organized finances.
5. 100% Financing
Many first-time home buyer programs offer 100% financing, which means that nothing is due at the time of signing. This gives an individual or family time to settle into their new home before payments begin.