What is a First Time Homebuyer Loan?

What is a First Time Homebuyer Loan?

Loans for First Time Homebuyers When you decide to buy your first home, you’re known as a “first time homebuyer.” Because many first timers are at a point in their lives where money can be tight, they often seek out first time homebuyer loans (aka mortgages) in order to pay toward their purchase and make it a reality.

First Time Hombebuyer Loans

First time homebuyer loans are usually designed to help people become first time homeowners in certain geographic areas. Generally, they’re meant for “qualified” buyers who can conceivably make payments over time to “pay them off.” There are several costs associated with buying a home, such that a loan helps cover things like the “down payment” and “closing costs.”

If you’re in the position of buying your first home, you’ll want to look online for good loan programs. You can check out the HUD website or try typing “buying a home in Amherst, New York” to see what comes up. Keep in mind there are a variety of loan options out there, and you might want to add certain terms to your search if they’re germane: veteran, teacher, disabled, etc.

Typically, first time homebuyer loans are meant for people who have never owned a home, though in some cases they might be offered to those who haven’t owned a home in a long time. You might have to meet certain financial restrictions– certain loans won’t go to people who have high incomes or substantial assets. In addition, these loans are meant for less expensive homes, with the idea that first time homebuyer loans help people most in need.

Regarding the home you buy, you’ll have to live there as your primary residence. Your home also has to meet physical requirements, such that it’s in good condition and safe for occupancy.

If you’re not a first time homebuyer, but you’d still like financial assistance, consider seeking out a conventional loan or FHA loan. If you’re credit isn’t that great or you’re recovering from financial hardship, a FHA loan is a good choice, allowing you to buy a house with as little as 3.5% down.

If you need helping finding your first home in Western New York, contact Donna Littlefield today.

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