Buying a house is difficult, especially when you are a first-time buyer. Besides the cumbersome paperwork, the fees, the terminology, and the people involved can make it a hectic process. People generally want to complete everything as fast as possible and relieve from the stress of buying a home.
Here we have discussed a few important first-time homebuyer programs and loan to help in your buying process.
FHA loan
This is the most appropriate program for first-time home US buyers and also for those who have a shaky credit history. The Federal Housing Administration FHA assures a specific portion of FHA home loans that frees creditors to widen their acceptance standards. With the backing of the FHA loan, borrowers are eligible for loans as small as 3.5% down.
The best part of this loan is that there is no upfront and continuing additional cost inbuilt into it. In this way, FHA loans safeguard the investor’s stake in the mortgage at the time of default. Blackhauk bank is a reputed bank that helps first time home buyer program in Illinois.
VA loan
“The U.S. Department of Veterans Affairs” assists veterans, surviving spouses and service members to realize their dream of the home purchase. VA loans are designed to be quite generous, that requires no mortgage insurance or down payment.
However, similar to various military operations, the consent track is designed for precision, and not speed. The Veterans Affairs loan has some requirements such as debt and necessary income. VA lenders can add their own supplementary requirements or “overlays”.
USDA loan
The U.S. Department of Agriculture or USDA provides a program to assist home buyers living in rural areas. Though, there are a few income limitations that differ from one region to another.
State first-time homebuyer programs
Along with the above stated national programs, there are several loans that are offered by local and state governments to provide help to home buyers.
The Energy Efficient Mortgage program
This plan extends the borrowing capacity of a person at the time of purchasing a home with power-saving enhancements or upgrades the green features of your home. If you meet the requirements for a home loan, then you can supplement your existing mortgage with this EEM benefit.
Conclusion
These are some of the loan programs that will make your home buying process simpler and profitable. With any of these plans, you can score big savings.
