10 Houston First-Time Homebuyer Loans & Programs
As a first-time homebuyer, you must be navigating one of the toughest real estate markets in the economy. It’s very hard to find the right house to buy since most people are buying any available houses to flip for profit. On the other end, builders are now focused on high-end homes because of the escalating costs so they can boost their own profits.
The Benefits Of Loan Programs For First-Time Homebuyers
Are you thinking about buying your first home? Well, there are first-time homebuyer programs, loans, and grants available to you. These are financial assistance programs given to qualified buyers, especially if they meet the set income restrictions and have high credit scores. Here are some of the ways you can benefit from these programs.
You might be eligible for a grant to cover costs related to buying a home such as down payment or closing costs.
2. Assistance With Closing Fees
You can get a loan that puts a cap on the total amount you can be charged for closing fees.
3. Deferred Payments
With these loans, you will not be charged interest or be forced to repay the loan until you sell the home or pay off the mortgage.
4. Savings On Interest
Some loan lenders will pay the interest or subsidize it. You can also get help with qualifying for a loan with reduced interest rates.
5. Loan Forgiveness
If you stay in the home for a predetermined period, a portion of your loan will be forgiven.
6. Assistance With Down Payment
With this program, you will put down a small down payment and the lender covers the rest. Also, in some cases, you will not pay the down payment at all.
10 First-Time Homebuyer Loans & Programs
It is a loan for buying a home guaranteed by the Federal Housing Administration. It is the best loan program if you have low credit scores and a little amount of money as a down payment.
It is a loan program guaranteed 100% by the U.S Dept of Agriculture. It is applicable to low-income loan borrowers in rural areas.
3. VA Loan Program
It is a loan program guaranteed by the U.S Dept of Veteran Affairs. Here, any military personnel will not pay any down payment. It’s also applicable to veterans and their families.
4. Good Neighbor Next Door Buyer Aid Program
It is a program offered by HUD (the U.S Dept of Housing and Urban Development). It is a housing program for people in law enforcement, emergency medical technicians, firefighters, and teachers.
5. Freddie Mac Or Fannie Mae Loans
They are conventional loans that are backed by Freddie Mac or Fannie Mae. They require a 3% down payment. It’s the best loan for people with strong credit.
6. HomePath Ready Buyer Program
Here, you will get 3% assistance with closing costs if you are a first-time homebuyer. To qualify you must complete an educational course and also buy a foreclosed Freddie Mac or Fannie Mae property.
7. Energy Efficient Mortgage Program
It is backed by VA or FHA loan programs. Here, buyers can combine the total cost of energy-efficient upgrades and apply for loan upfront.
8. FHA Section 203 (k) Loans
Here, you can borrow the money needed to pay for any home improvement projects. You will roll the costs into an FHA loan with the primary mortgage.
9. Local First-Time Home Buyer Programs & Grants
Various cities and states offer first-time buyer grants and programs for a down payment on a new home or assistance with closing costs.
10. Native American Direct Loan
It is a program backed by the VA that offers loans to Native American Veterans. They can buy, build, or renovate homes on their federal trust land.