For those who have decided they want to try homeownership, may be happy to know that there are first time home buyer programs available. Some things you need to know before you apply is that the many organizations that provide assistance for purchasing your first home can have some tough program requirements.
Remember that the economy has taken a hit with many distressed properties and home repossessions that come on the market daily. Banks are very careful with who they approve for a home loan and the expectations are higher for individuals who have bad credit. So to help you with the process its important to pay attention to the eligibility criteria such as in the case of government programs that help renters become homeowners.
Some include the american dream down payment initiative, as well as the department of housing and urban development that provides grant money statewide . Things that will be considered when you apply is your annual income as well as if this is your first time getting a mortgage loan.
In most cases you will get help with a down payment on a home, or assistance with closing costs. You may be able to save money by choosing to purchase a fixer upper. Check your local area to see if there are any government grants that help with home repairs. Just remember that renovations on a property can get costly.
Mortgage lenders that offer lower interest rates to first time borrowers can help significantly giving you a financial advantage for a first time home buyer loan.
The U.S. Government also has programs that offer a first time home buyer tax credit as high as eight thousand dollars. To qualify you will need to be ready for the financial responsibility and be able to show that you can afford the monthly payments.
Also you must purchase your home by the set deadline dates to qualify, then it is necessary to find out if you will have to pay back this credit, so check the repayment requirements for your state by checking out the IRS website.