Financial Assistance offered for First-Time Home Buyers by the Federal Government

For most of us, home ownership for the first time can be nerve-racking process. For most of us, it is the largest investment of our lives. Being a home buyer for the first time, you might not have enough savings and capital gains to afford a house or pay down payments. In this case, you have the hope of credit score that is enough to get approval for mortgage. As a home buyer, if you know where to go, you can have a little assistance. Federal government has launched several programs to assist first-time homebuyers, such as easy approval, low down payments and price discounts.

Types of Government Assistance for First-Time Homebuyers

FHA

The Housing & Urban Development (HUD) in the US launched Federal Housing Administration in 1934. Since its inception, it has been helping first-time homebuyers to buy their own home. FHA provides home loans to the homebuyers. Getting qualified for FHA Loans is very easy as it includes low down payment and low closing costs. As per the website of HUD, the down payment to afford a home may be lower than 3.5%. In the home loan’s cost, the closing cost can also be inclusive.

Loans from VA

If you have had served in US Military and got very respectable retirement, then you may be eligible for Veteran Affairs (VA) loans and apply for it at the Department of VA in the US. From the Department of Veteran Affairs, you are required to apply for certificate for eligibility and submit the same to your mortgage lending company which accepts applicants from Veteran Affairs program for mortgage. You can get approved easily with this program for fixed-rate and low interest home loan for the term between 15 and 30 years.

Good Neighbor Next Door Program

For the first-timers, one of the best ways to get affordable property is to meet the condition to become a part of emergency services or a Lower KG to 12 Teacher or a law enforcement officer. Such types of homebuyers can get assistance from HUD in the locations which requires revitalization. Good Neighbor Next Door is a name of program which involves 50% of discount on home cost given by the HUD if one commits to live in a specified location for over 3 years and perform their duties in their specified sector. A homebuyer signs a note of 2^nd mortgage to get home at reduced cost.  

To know more about buying or finding properties to rent in Wimbledon, contact Southfields estate agents. 

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