Buying a home can be a dream and a nightmare at the same time for most of us. It involves tiring paperwork, fees and much more. The process gets more difficult for a first-time home buyer as they will be cross-questioned. Before prejudging the situation, read on to find out about the four kinds of loan programs available that can help first time home buyers.
Following are the loan programs, and a brief explanation to help you understand the process involved.
FEDERAL HOUSING ADMINISTRATION (FHA)
This is a good option for the first time buyers. The FHA is a United States government agency within the Housing & Urban development department. It is also of a great benefit for the ones with an unsteady credit history. The Federal Housing Administration provides assurance for a part of home loans that widens the standards of acceptance of the lenders. Borrowers have the privilege for a down payment which is as low as 3.5%. This is offered to borrowers who have a credit score as low as 500.
THE UNITED STATES DEPARTMENT OF AGRICULTURE (USDA)
A home buyers’ assistance program is being provided by the U. S Department of Agriculture. You don’t have to live on the farm to be eligible for this program. This program for home buyers’ assistance earmark rural or pastoral areas and provides 100% funding. The lender’s mortgage guarantee is also offered by this program. Certain income limitations exist and that varies as per the regions chosen. The program is well planned to ameliorate the quality of life and economy of rural America. In 2017, the United States Department of Agriculture aided 127,000 families purchase and improve their homes, as part of their Rural development program.