Buying a home can be financially challenging, especially if you’re a first-time homebuyer. But don’t give up if you think you can’t handle the financial burden alone. There various assistance programs geared toward first-time homebuyers. However, confusion about who qualifies can pose problems, which has lead millions of families not been able to buy a home. In this article, we’ll explore some programs the first-time homebuyer can apply for.
Who Qualifies As A First Time Homebuyer?
By definition, a first-time homebuyer is an individual who is purchasing a residential house for the first time. You may be qualified as a first-time homebuyer according to the following criteria:
- Non-home ownership: You may qualify if you have been living in a place that isn’t attached to a foundation, for instance, an R.V. or a mobile home.
- Property damage: You may qualify as a first time homebuyer if you have owned one property, which has sustained some damage. However, the property must be classified as ‘damaged’ according to local and state building codes.
- Divorce. Individuals who become displaced from their spouses in any way may qualify as a first time homebuyer.
Grants And Programs For First-Time Home Buyers
If you think about buying a house and don’t have all the funds you needed to acquire a piece of property, then there are alternatives way to purchase your home. Below are some of the first-time homebuyer loan programs you should apply for.
- FHA Home Loan
FHA loan help more first time home buyers become homeowners than any other type of mortgage program available. FHA loans are a good option for anyone who doesn’t have 20% to put toward a down payment or first-time homebuyers with poor credit. Below are the requirements needed to qualify for this loan.
- You’re at least two years out of bankruptcy
- You plan to use the house as your primary residence
- You have a steady employment history of at least two years
- Debt To Income Ratio is not more than 55%
- Your credit score is at least 580
- 500 and 579 credit score may qualify with a 10% down payment
- A. Loan
You can benefit from V.A. loan from the Department of Veterans Affairs if you are in the military. V.A. loan is available for first-time homebuyers in partnership with several lenders. V.A. loan requires NO down payment. Below are the requirements needed to qualify for this loan.
- You’re a U.S. citizen who served in the Armed Forces
- You’re on active duty now (for 90 continuous days)
- You’re an active veteran, service member, or surviving spouse
- USDA Loan
You may qualify for financing through the USDA loan program if you are considering a home in a rural area. This home loan program from the U.S. Department of Agriculture is for low-to-moderate-income home buyers in rural areas of the country. It’ s perfect for first-time homebuyers because there is NO down payment required and the credit requirements are much lower than what other lenders look for. Below are the requirements needed to qualify for this loan.
- You’ll need a credit score of 680 (or higher) for zero down payments
- Credit scores below 680 pay a 10% down payment
Having your own house is one of the greatest things that could ever happen to you, but the process isn’t always straightforward. Fortunately, you can achieve your goal with the assistance programs above. If you are a first-time homebuyer looking for a loan, then contact HQM Loans today.