Surely the idea of buying a house for the first time has been on your mind for a long time, But now that you have finally decided to take the big step, you wonder how to buy a house if you have never done it before.
If, in addition to being a first-time buyer, you are looking for Government help to buy a house, the effort it will require will be double; so arm yourself with patience, study all the possibilities that you may have access to; and read this article in which we bring you the essential aid programs for people who want to stop renting and become owners.
It is necessary to mention that we will present you with the government programs dedicated to this purpose. However, at the local level, many organizations and institutions grant help to buy a house. Ask your local authorities what types of service they offer.
In addition, on the internet, you can find non-governmental organizations (NGOs), which are also given the task of offering subsidies to those who qualify for them.
The first thing we want to conceptualize is conventional loans. Those who can access a traditional loan must have a solid and stable income, giving at least 3% of the house’s value as a down payment. Currently, there are two types: conforming loans and non-conforming loans.
Conforming Loans
these are those loans in which the approved amount will not exceed the limit imposed by the Federal Housing Finance Agency.
Non-Compliant Loans
these are those loans that do not meet the guidelines established by the Federal Housing Finance Agency.
Jumbo Mortgage Loans
This type of loan is within conventional loans. They are considered giant loans because they exceed the limits imposed by the Federal Housing Finance Agency.
It makes it a non-compliant loan, but also, due to the high cost of housing, it will be considered a giant. For the same reason, the financial institutions that grant the loan will require more paperwork when approving it. This type of loan is usually seen in areas where the high cost of housing is the rule; a good example would be in New York or Los Angeles.
Do you Need Help to Buy a House?. What are the Most Popular Assistance Programs?
Many programs help buy a house; the best advice we can give you is you not only explore your possibilities with the ones we will mention below but also review the possibilities within your community. Remember that if you are not eligible for any of these, you can count on the BuyHouseEZ programs:
Federal Housing Administration (FHA) Assistance Program
Through this program, the government guarantees the loan you want to apply for, making it more likely to be approved. Help all those buyers who have a low FICO score ; This means that if you do not have a good credit history, this is a valid option for you.
In addition, you will be able to opt for a maximum financing of 96.5%, which means that you will have to put together a down payment of 35%.
Assistance program from the Veterans Affairs Department (VA)
This program can be beneficial if you are an active member or veteran of the United States armed forces. Provide a guarantee for the loan you request so that the interest is meagre, and the conditions are very flexible.
The benefits of this loan are varied and will depend on your specific situation; some of these are:
-You do not have to make a down payment unless the house’s value exceeds that set by the appraisal.
-It is reusable; This means that you can opt for help, not only for purchasing your first home but every time you want to buy a property.
-They also have programs for those veterans who cannot pay their loans.
-The VA limits certain closing costs that veterans can afford.
If You Need Credit Help to Buy a House
Although the previous programs are also helpful if you want to buy a house for the first time, those that we will name you below are mainly indicated for those people who do not have enough financial resources or are not members of the United States armed forces:
United States Department of Agriculture (USDA) Assistance Program
The USDA assists all who want to be homeowners for the first time but do not have sufficient financial resources. The primary condition is that the house must be in areas classified as rural by this agency. They are modest but clean and safe houses and offer the following benefits:
– Loans and subsidies to repair a property if you do not have the necessary resources.
– Rental Assistance if you can’t become a homeowner yet but need help at a particular time.
– Debt refinancing for those who have already bought and need extra help.
Programs that Help to Buy a House for Single Moms
In the United States, not thousands but millions of single mothers try to raise their children every day. With only one income to support a family, saving for a down payment and even facing a Mortgage fee becomes challenging.
For this reason, we wanted to recommend a program that suits your situation.
Department of Housing and Urban Development ( HUD ) Assistance Program
This program primarily helps low-income families, single mothers, and people with disabilities.
If you want to buy a home through this program, you must at least have income above the minimum limit established by HUD.
In general, the program has the following benefits:
– Section 8 Housing Vouchers: through these vouchers, the family that receives them benefits from a reduction in the rent they must pay since the vouchers serve as part of the payment.
On some occasions the program allows these vouchers to be used to pay a Mortgage installment.
Of all the assistance and subsidies that can be received, vouchers or vouchers are the most flexible.
To qualify for this program, your income must not exceed the median income of families in your community. Eligibility is based on this income and the size of your family.
If you want to opt for this program, you must go to the Public Housing Agency (PHA), which is located in your community.
How to Get Help to Buy a House Outside Government
All these programs are aimed at people who have an SSN, which means that if you only have an ITIN or Tax ID you will not be eligible. Fortunately at BuyHouseEZ we offer another alternative for those who want to buy a house. Visit our website BuyHouseEZ.com to learn about all the benefits and the necessary requirements to prequalify.
Most Tax ID loans typically require a down payment above 20%. At BuyHouseEZ we have set the down payment in half; You can know if you are eligible by answering only 5 questions, contact our specialists and they will call you to advise you and tell you if you can opt for one of our loans.
