Home / Everything Else / 4 Factors That Will Help People Buy Their First Home
Everything Else

4 Factors That Will Help People Buy Their First Home

4 factors that will help people buy their first home

Money is the major issue that stands in the way of first-time homebuyers. A survey reveals that nearly 80% of millennial renters want to buy a home, but most of them cannot afford it. Many first-time homebuyers do not realize that there are various grants and programs offer financial help, and they may also be eligible for other assistance programs.

4 Factors That Will Help People Buy Their First Home
Along with information about financial aid, this article also gives additional information about buying a home at low mortgage rates and tax benefits on home loan repayment.

What are the grants and programs offered?
Here is the list of grants and programs for first-time homebuyers designed to help people get a great mortgage and buy their dream home.

  • FHA loan: The Federal Housing Administration insures this mortgage. The FHA is a bureau under the U.S. Department of Housing and Urban Development. It provides complete coverage and offers a layer of protection. FHA loans come with the best interest rates, and lower down payments and closing costs than conventional loans. A potential homebuyer should have a credit score of 580 or above to be eligible for an FHA loan. Buyers with lower credit levels are also eligible for the mortgage but the down payment would be a minimum of 10% of the mortgage amount.
  • USDA loan: The U.S. Department of Agriculture offers a financial assistance program for first-time homebuyers. USDA is not well known among borrowers. You can easily avail this mortgage if you are planning to buy a house in a rural area. Additionally, you need not run a farm to be eligible for this loan. The USDA does not require any down payment and guarantees a home loan with fixed loan rates. Applicants with a credit score of 640 and above can get the loan approved through a streamlined process. Homebuyers who have a credit score that is lesser than 640 may have to submit payment history documents.
  • Good Neighbour Next Door program: The U.S. Department of Housing and Urban Development (HUD) funds this program. It provides housing assistance to firefighters, law enforcement officers, pre-kindergarten to 12th-grade teachers, and medical technicians. This program covers about 50% of the amount on a home’s listed price in places known as revitalization areas. You can make use of the program’s website to find properties available in your area.
  • VA loan: Veterans, active duty military members, and surviving spouses get funds to buy homes from the U.S. Department of Veterans Affairs. The VA lenders promise to pay a part of the loan, making it possible for them to provide special offers. They require no down payment and come with unimaginable interest rates. You need to hold a decent credit score to become eligible for the loan, and they require you to pay for private mortgage insurance. If you cannot make a mortgage payment, the VA agents would negotiate with the lender on your behalf.

What are some grants offered by the government?

  • Fannie Mae and Freddie Mac are two government-funded bodies.
  • They work with local mortgage providers to offer loan options that benefit low and moderate-income families.
  • Banking with Fannie Mae and Freddie Mac, first-time homebuyers can get a loan at competitive interest rates, and get a down payment option as low as 3 percent of the purchase price.
  • Fannie Mae also educates first-time homebuyers by offering HomePath Ready Buyer™ program. Upon completing this course, homebuyers are eligible for a 3% closing cost assistance.

What are some local grants and programs available for first-time homebuyers?

  • To be on the safer side, it is always good to apply for a mortgage at the federal government bank.
  • There are additional grants and programs provided by various state and cities to help first-time homebuyers.
  • Grants and programs vary from state to state.
  • Before approaching the bank, check the state’s community website for details on housing grants and programs provided in your area.

What are the additional benefits buyers can claim on loans?

  • First-time homebuyers can claim tax benefits for the interest they are paying.
  • Making principal repayment also helps in tax deduction.
Disclaimer:
The content provided on our blog site traverses numerous categories, offering readers valuable and practical information. Readers can use the editorial team’s research and data to gain more insights into their topics of interest. However, they are requested not to treat the articles as conclusive. The website team cannot be held responsible for differences in data or inaccuracies found across other platforms. Please also note that the site might also miss out on various schemes and offers available that the readers may find more beneficial than the ones we cover.

Most Recommended Blogs

Identification And Treatment Of Kidney Stones
Health & Wellness

Identification And Treatment Of Kidney Stones

Identification and treatment of kidney stones A kidney stone is formed when there is a gradual buildup of material in the kidney through substances in the urine. It has a plethora of causes and can affect any part of the urinary tract from the kidneys to the bladder. The stones can be as small as grains of sand or as big as pearls.
How Can You Control The Symptoms Of Liver Damage
Health & Wellness

How Can You Control The Symptoms Of Liver Damage

How can you control the symptoms of liver damage? The liver is an integral part of a human body. It is located just under the rib cage on the right side of the abdomen. The liver helps in digestion and removes toxins from the body. It filters out all the blood coming out of the digestive tract before it goes to the rest of the body.
Helicobacter Pylori (H. Pylori) Infection – An Overview
Health & Wellness

Helicobacter Pylori (H. Pylori) Infection – An Overview

Helicobacter pylori (H. pylori) infection – An overview H. pylori can be described as a common bacteria found in the human digestive tract. These have the tendency of attacking the lining of the stomach. These bacteria are the main reason for stomach infections. Typically speaking, H. pylori infections do not tend to be harmful, but they are responsible for ulcers in the small intestine and the stomach.
Everything You Need To Know About The Flu
Health & Wellness

Everything You Need To Know About The Flu

Everything you need to know about the flu Flu is a common viral infection that can affect anyone. In some cases, the flu can be deadly. It is often mistaken as other health conditions because of the symptoms it exhibits. Flu is contagious. Every person is affected by the flu at least once in their life.
Head And Neck Cancer Treatment Options In The Country
Health & Wellness

Head And Neck Cancer Treatment Options In The Country

Head and neck cancer treatment options in the country Most cancers of the head and neck are curable if they are caught at an early stage. Apart from eliminating cancer, which is the primary goal, preserving the functionalities of the nearby organs, nerves, tissues, and glands are also very important.
An Overview Of Frequent Urination- Causes, Symptoms, And Treatment
Health & Wellness

An Overview Of Frequent Urination- Causes, Symptoms, And Treatment

An overview of frequent urination- Causes, symptoms, and treatment Frequent urination, as the name suggests, is the recurrent urge to pass urine more often than usual. An individual’s everyday normal routine and sleep cycle can be disrupted by this condition. Frequent urination may be a sign of an underlying medical condition.
Things To Consider Before Going For Head And Neck Cancer Treatment
Health & Wellness

Things To Consider Before Going For Head And Neck Cancer Treatment

Things to consider before going for head and neck cancer treatment The head and neck are the most vital and fragile parts of the body. If diagnosed with head and neck cancer, there are a lot of things that should be kept in mind before starting the treatment. One should know how long the treatment would take and what are the chances of them defeating it.
Everything You Need To Know About Frequent Urination
Health & Wellness

Everything You Need To Know About Frequent Urination

Everything you need to know about frequent urination Frequent urination is called polyuria in medical terminology. Also called frequency, it is a condition many people live with and do not seek medical assistance as they consider it to be a normal thing. Frequent urination means a desire to pass urine more often than what is normal for them.
Best Detox Drinks That Can Help You Lose Weight
Health & Wellness

Best Detox Drinks That Can Help You Lose Weight

Best Detox drinks that can help you lose weight If you have tried a lot of methods to lose weight and still are unable to shed those extra pounds then detox water and other healthy drinks might be the answer for you. Drinking detox water helps the body in many ways.
Low Calorie Health Drink Ideas For Winners
Health & Wellness

Low Calorie Health Drink Ideas For Winners

Low-calorie health drink ideas for winners Low-calorie health drinks are becoming more and more popular with every passing day, as people start to realize the number of health benefits these drinks bring to the table. Healthy drinks not only have low-calorie content but also contain varying amounts of nutrients and antioxidants.
Signs And Symptoms Of Internal Hemorrhoids
Health & Wellness

Signs And Symptoms Of Internal Hemorrhoids

Signs and symptoms of internal hemorrhoids Hemorrhoids, also known as piles are of two types: internal & external. They are essentially swollen veins found in your anus or lower rectum and consist of blood vessels, elastic fibers, and multiple tissues. It is a common medical condition and found among most US citizens before they touch the age of 50.
Treatment Options For The Prolapsed Bladder Condition
Health & Wellness

Treatment Options For The Prolapsed Bladder Condition

Treatment options for the prolapsed bladder condition The bladder is a muscular sac located just behind the pubic bone, which stores urine. The front wall of the vagina supports the bladder in women, and it weakens or loosens with age. If it continues to deteriorate, it can lead to a prolapsed bladder or fallen bladder condition.
Everything You Should Know About Treating Gas Problems
Health & Wellness

Everything You Should Know About Treating Gas Problems

Everything you should know about treating gas problems Gas can be quite embarrassing to deal with, to say the least. However, the problem of a gassy stomach extends far beyond just embarrassment and can actually be a very painful experience indeed. Also known as flatulence, a gassy stomach is characterized by the excessive buildup of gas inside the digestive tract.
An Overview Of Fibromyalgia Pain
Health & Wellness

An Overview Of Fibromyalgia Pain

An overview of fibromyalgia pain Fibromyalgia is a condition that causes pain, stiffness, and tenderness in muscles, tendons, and joints throughout the body. People experience fibromyalgia pain differently, and its triggers vary from one person to another. The condition can affect anyone, but it is seen more often in women.
Remedies And Treatment For The Helicobacter Pylori (H. Pylori) Infection
Health & Wellness

Remedies And Treatment For The Helicobacter Pylori (H. Pylori) Infection

How to manage and treat the symptoms of Helicobacter pylori (H. pylori) infection? Helicobacter pylori (H. pylori) are bacteria that enter our body and live in the digestive tract. They are usually harmless and infect the stomachs of roughly 60 percent of the world’s population. The spiral-shaped bacteria usually don’t cause any symptoms but have a tendency to attack the stomach lining, leading to diseases, including peptic ulcers and an inflammatory stomach condition known as gastritis.
Factors Triggering Fibromyalgia Pain And Ways To Alleviate It
Health & Wellness

Factors Triggering Fibromyalgia Pain And Ways To Alleviate It

Factors triggering fibromyalgia pain and ways to alleviate it Generally, when a person is injured or hurt, the signal travels all the way from the injury point to the brain and the brain comprehends this as pain. The brain signals the body to respond accordingly. Slowly, the pain lessens with time and treatment and finally goes away.