First Time Home buyers

First Time Home buyers2023-01-05T08:15:40-05:00
First Time Home Buyers

Buying your own home is a common dream for many Americans that may feel, at times, just out of reach. One of the biggest hurdles is the upfront costs associated with buying a home, such as the down payment or closing costs. However, there are numerous loan options that are available that many first-time home buyers are able to qualify for, with little or no down payment. As for closing costs, there is no reason to fear this expense as many lenders will grant you a credit, or allow you to roll your closing costs into your mortgage (or you can negotiate with the seller to cover them costs for you).

Loans With Little or Zero Down Payment Requirements

FHA Loans: Highly beneficial for home buyers, including first time home buyers, with a poor credit history, low credit score, or who are unable to put an extensive down payment towards the loan. Only 3.5% of the home value is required for a FHA loan.

Conventional Loans: Yes, you read that correctly! Both Freddie Mac and Fannie Mae offer a special conventional loans, called the Home Possible Advantage and HomeReady (respectively), that accept down payments as low as 3%! Also, other conventional loans are available that accept 5-20% down.

USDA Loans: When buying a home, look just outside the city at the open-aired rural areas surrounding it. Many of those homes are just as great as those in the city, and only add a short amount to your daily commute to work; and they may qualify you for a zero down payment loan through the USDA Rural Development Program.

VA Loans: If you, or your spouse is a veteran or active service member, then you can qualify for a loan sponsored by the U.S. Department of Veteran Affairs. With a VA loan, there is no down payment requirement, no mortgage insurance, and sellers are encouraged to offer up to 4% of your closing costs, so you may need even less at closing!

Other Programs: American Dream Home Mortgage also facilitates first-time home buyer purchases through Hillsborough County Down Payment Assistance Program. The purpose of Hillsborough County’s single family programs is to help families become eligible to qualify for mortgage loans. A modest increase in the down payment amount or a modest decrease in the mortgage interest rate, generated through Hillsborough County’s programs, can often be just enough to allow families to qualify for loans for which they otherwise would not qualify.

Additional Resources:

Hillsborough County Down Payment Assistance Program

Home Possible Advantage


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