Buying a home for the first time is exciting! Owning real estate is great because you can earn equity, and it can be a great investment when property values go up! However, coming up with the cash to afford a down payment is tricky. Not many people have tens of thousands of dollars available to put down. Even if you do, you might want to save that money for other expenses. Thankfully, there are many programs available to help first time home buyers. Here are some of the top programs to help avoid a ginormous down payment.
FHA Home Loans – Loans can be insured through the Federal Housing Association, which allows lenders to offer loans with a lower down payment and credit score requirements. With an FHA Loan, you can buy a house with a down payment as little as 3.5%! If you’re a first-time home buyer, definitely consider applying for a FHA loan – their easier qualification requirements and smaller down payment make them a wonderful option!
USDA Loans – USDA Loans, offered by the U.S. Department of Agriculture, have low interest rates and can have no down payment. However, they’re only available in rural areas and some suburban areas. If you love country living, a USDA loan might be right for you!
VA Loans – Meant for service men and women and their spouses, VA loans have no down payment and no mortgage insurance! However, they do have a VA funding fee, which costs between 1.25% and 3.3% of the loan. They can be easier to qualify for than conventional loans.
Local Grants and Programs – You may be able to find grants, down payment assistance, and other programs locally! These programs are tailored to your specific area and can be very useful. Be sure to do a thorough search to see what you might qualify for!
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