Buying a home is a huge decision. It might take a lot of time and money to make sure you achieve your goal. Thankfully you can get help from Uncle Sam.
There are a number of federal programs that offer a lot of assistance to the residents of the USA who wish to buy homes. Here are a few of them for you to check out:
Veterans Affairs Home Loan
If you are a veteran, an active military member, a reservist, or a spouse of a military member, you can qualify for a VA loan to buy your home. You don’t have to worry about making any down payment to get your loan. Nor do you have to pay any mortgage insurance that can add up to your monthly payments.
Although it is not the U.S. Department of Veterans Affairs that provides these loans, it guarantees a significant portion of the loan to protect the lender’s investment in case the borrower defaults. However, you will have to contact only VA-approved lenders if you want to apply for a VA loan. You can find many through VA leads.
Housing Choice Voucher Homeownership Program
It may not be easy for everyone to afford mortgage payments every month when it comes to buying a home. And then there are also the homeownership expenses that include your property taxes, utility bills, insurance, and maintenance charges you need to pay for. Thankfully there is a way to tackle this – the HCV Homeownership program.
Administered by the local public housing authority, this program will give you vouchers that you can use to cover your monthly homeownership expenses and a significant portion of your monthly mortgage payments. However, you will have to qualify and secure a 30-year Fixed-Rate loan from a bank. You will also have to pay up the 20 percent down payment and the closing costs that amount to 6 percent of your purchase price.
This assistance is available for a span of 15 years. Nevertheless, if you fall into the category of elderly/disabled, you can avail of the assistance throughout the term of your mortgage.
Rural Development & Community Facilities Program
This program is administered by the U.S. Department of Agriculture to help low-income families buy homes in rural areas. You will get 100 percent financial assistance without having to worry about making the down payment or paying up for the closing costs. Nevertheless, to qualify for this program, you will need a decent credit history and should be able to afford your monthly mortgage payments and homeownership expenses.
Federal Housing Administration (FHA) Mortgage Program
If you cannot afford the 20 percent down payment that most conventional mortgage lenders ask for, your best option is to apply for an FHA loan. You can get all the financial assistance you would need to buy your home just by making a 3.5 percent down payment. Nevertheless, you will have to pay up mortgage insurance, both upfront and annual. Guaranteed by the Federal Housing Administration, these loans are easy to qualify for and are available to even those borrowers who don’t have a decent credit history.
Buying a home need not be a goal that is unachievable. There are many programs that you can find assistance from. All that you need to do is explore your options, find out which ones you qualify for, get your documentation ready, and apply for the same.