At some point, you are going to think about buying your first home. It seems like an overwhelming task with a ton of questions: Can I afford it? Where should I buy? Where do I get help? These are valid questions. Zillow reports that 46% of home buyers are purchasing a home for first time, and with that first home can come particular financial hurdles around saving for a down payment, and paying for closing costs. Thinking about buying your first home? Here are some helpful first-time home buyer resources.

The good news is that there are resources that provide assistance to first-time home buyers. Some financial programs are federal and local options, some that require as little as 3.5% down. There are also loan programs for all buyers with more flexible qualification requirements than conventional mortgages provide.

In fact, most first-time home buyer programs target buyers who have not owned a home in the last three years. So, even if you’re owned a home in the past, one of these buyer programs or grants could apply to you.

Here’s an overview of available options:

Grants: Grants offered typically do not have to be repaid. The grant does not cover the purchase price of the home but can apply towards closing fees or your down payment to help reduce your total home buying costs. Some grants are given in the form of a low-interest loan with deferred repayment and will need to be paid back, usually when the home is sold.

The federal government has programs giving funds to states and municipalities to distribute locally with guidelines around first-time ownership and home buyer education. Some cities offer grants for lower-income buyers. These grants are available for buyers that are teachers, firefighters, and other community-based professionals. Several nonprofits also offer grants to help first-time home buyers.

Down Payment Assistance Programs: Down payment assistance programs work in conjunction with loan programs, such as those offered by FHA, VA, USDA, Fannie Mae, and Freddie Mac. Your lender will have specifics on these programs.

HomePath Ready Program: The HomePath Ready Program offers up to 3% of a home’s sale price in closing assistance. To qualify for this program, you will need to purchase a HomePath property. Buyers are required to complete a homeownership education course. Consult your lender for more information about this program.

Programs through HUD: HUD, Housing and Urban Development, has several programs to assist the first-time home buyer. There are specific programs available at the state level.

First-Time Home Buyer Loans: The federal government offer loans specifically for the first-time home buyer.

A FHA loan is a loan option because the qualification requirements are typically not as strict as other loan programs. FHA loans are insured by HUD’s Federal Housing Administration and are designed to encourage lenders to lend to borrowers who don’t have perfect credit or significant upfront cash.

A USDA loan is an option for buyers looking for home in approved rural locations. USDA loans are great for first-time home buyers with limited income because they are guaranteed by the government.

A VA loan is for U.S. military members, including veterans, active duty, and their families. VA loans are backed by the Veterans Administration and typically have very favorable down payment minimums and qualification requirements.

If we can be of assistance in understanding more about these programs, please give us a call or email us today!