On many occasions at BuyHouseEZ we receive calls asking for first time homebuyers programs; and although we have an excellent program for those people who want to buy a house and are not eligible for a conventional loan; many of them refer to those government programs that can help them.
It is our policy to help our callers where we can and give them the best advice, even if we can’t help them through our programs; and this is why we want to give you more information about different programs to which you can apply, depending on your current situation.
For first-time buyers it is even more difficult, because they do not have an investment made that will serve as a down payment nor enough money to buy their next home.
To begin with, we must say that there are not only programs to buy a home for the first time at the national level; but also each State has its own programs for its inhabitants.
In addition, there are private organizations of all kinds in each locality, these are more individual programs and opting for them will depend, to a large extent, on the work environment of the person who wants to apply or on his/her individual condition.
A good example is the buyer programs banks offer to their customers; So to apply, you would first need to be a customer of that specific bank, and then meet the characteristics required to apply.
The most important thing is to investigate all the possibilities and to have and open mind, because sometimes the opportunity comes in a different way than what we have envisioned.
What First Time Home Buyers Programs are Available and How to Find the Perfect for You?
As we have said it before, the most important thing is to know how to choose the program to buy the ideal house according to the situation. The best thing in this case is you carry out a thorough investigation, analyzing all the government programs or other organizations that are available and within your reach.
You will have to take several factors into account, because there are many programs that initially depend on the type of work you do or the area in which you live; it even depends on the economic level you have at the time. Always remember that if you are not eligible for a conventional loan you can go to BuyHouseEZ , ask about our programs without any commitment Here.
We also bring you several government programs that could help you:
Loans from (Federal Housing Administration ) :
These loans make it possible for people who do not have a high credit history and also do not have a large down payment, to access a loan to buy a house.
However , a minimum FICO (Fair Isaac Corporation )score of 580 is required to be able to opt for the maximum possible, if so, the FHA could finance you up to 96.5% of the amount of the house, requiring only 3.5% as a down payment.
It is worth mentioning that if you have a down payment of 10% or more, you can access this type of program with a minimum of 500 in the FICO score.
VA’S Loans (Veteran Affairs ) :
With this type of program, active members and veterans of the United States armed forces can opt for a loan to buy their home with a flexible interest rate.
The first thing to say about VA loans is that the VA department does not make the loans themselves but guarantees them.
With this type of guarantee you can choose the following:
-Buy a home already built or under construction, to have it as your main residence.
-Refinancing an existing loan with which you have bought the house that you have as your main residence.
It is important to mention that the VA loan program has very flexible terms and, in many cases, it is not necessary to have a down payment to buy the house.
Low Income and First Time Homebuyers Programs Near me
There are many programs for buying homes locally for people of low-income. However, the federal program with the greatest scope is the following:
USDA´S Loans (US Department of Agriculture) :
USDA loans have helped thousands of low-income people become homeowners. The main characteristic or condition of this type of loan is that they must buy a house in areas approved by the USDA as rural areas. In addition to this, there are limits on how much income you must have, meaning that if you earn more than what is stipulated, you will not be able to access this type of program.
This program has a wide scope since it does not only grant loans for low-income people. They also offer guarantees to access another loan, subsidies to carry out home repairs, debt refinancing, assistance with rent payments.
As well as financing to build residential complexes for the elderly, or the building of more than 1,000 housing complexes for families: among other interesting programs.
It must be considered that to apply for this loan type you must have a good credit history, and your FICO (Fair Isaac Corporation, calculation of credit scores) score must be equal to or greater than 680. Otherwise you will have to present additional documentation at the time of applying and approval will not always be guaranteed.
Are There First Time Home Buyer Program Assistance without Down Payment ?
Although we will always recommend our readers to raise as much money as possible before thinking about buying a house, many times this is not the situation and our income level does not allow us to have a saving capacity leading us to raise money for a good hitch.
This is why many of the government programs to finance the purchase of a house, exempt people from having to make a down payment.
The first ones that we are going to name are the ones that we have already explained before, since the VA program, for active members and veterans of the United States armed forces, has loans that do not require a down payment; but this only in some cases. Certain special conditions must be met to access full financing.
On the other hand, USDA loans, also explained previously, make special programs available for those people who do not have for a down payment, and can also provide 100% financing on the house value
Loans from the HUD (US Department of Housing and Urban Development) :
This type of program is available to low-income families living in public housing. Basically it is a voucher program helping pay for the Mortgage of the house, as well as other household expenses.
The requirements to be chosen as a beneficiary of this program are:
HUD establishes this aid will only be granted if it is the first home that is purchased. If you want to buy a second home or sell your first to buy a second, you will not be eligible.
-You must have a minimum monthly income established by local PHA (Public Housing Agency) agencies.
-There must be within the family nucleus at least 1 adult who has had a job during the last year without interruptions.
-You must complete the home ownership counseling program, dictated by the same Department.
Finally, we want to mention the BuyHouseEZ programs. Although these programs require a minimum down payment of 10%, they do not check credit history and they also work for people who do not have an SSN (Social Security Number), meaning that if the person has a tax ID they can apply without problem.
In addition, on the website you can find the section of calculators, in which the approximate amount that can be accessed is easily calculated. If you are convinced that the program can help you, you simply have to leave your name, telephone number and email, so that one of our specialists can call you and advise you on your financing.