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There are a variety of first-time homebuyer programs that offer financing options, down payment assistance, and tax incentives for first-time real estate buyers. To receive home purchase benefits, applicants must meet eligibility requirements. First-time buyers should do some research online or consult with a real estate consultant to determine which program best suits their needs.
Popular programs for first-time homebuyers include Fannie Mae financing, FHA loans, VA loans, and various programs offered through HUD. Homebuyers may also be eligible for the Assistance for Workers, Homeowners and Businesses Act, which provides an $8,000 tax credit for first-time homebuyers for real estate purchased before April 30, 2010. The Act of Recovery also provides up to $6,500 in tax credits to homeowners who have lived in their home for a minimum of five years and are ready to move to a higher-priced property.
Fannie Mae participates in first-time homebuyer and mortgage refinancing programs. One of the most popular home buying programs is Home Path®, which offers a variety of homes for sale. Fannie Mae Home Path properties include foreclosed real estate sold at reduced prices through approved realtors.
Fannie Mae homebuying incentives include low down payment requirements, no appraisal fee, home financing for people with bad credit, and flexible mortgage terms. Mortgage refinancing and first-time homebuyer programs can be found at FannieMae.com.
Home buyers with low FICO scores and credit problems may qualify for financing options available through the Federal Housing Administration. Buyers with inconsistent employment histories or those who previously filed for bankruptcy sometimes find it easier to qualify for FHA loans.
Currently, the FHA down payment requirement is 3-1/2 percent. Borrowers may obtain down payment funds from outside sources, such as a monetary gift or a loan from family, friends, or charities. FHA loans are the only home loan program that allows third party down payment assistance.
The Department of Housing and Urban Development offers a variety of programs for first-time homebuyers. While HUD programs vary by state, most provide opportunities to purchase HUD homes at substantially reduced prices.
Teachers, law enforcement officers, and public service professionals, such as firefighters and paramedics, may qualify for HUD’s ‘Good Neighbor Next Door’ program. This home purchase program allows the professionals listed above to purchase HUD homes at up to half the real estate list prices.
The Department of Veterans Affairs offers first-time homebuyer assistance programs for active duty personnel and retired veterans. The VA guarantees up to 25 percent of home loans to help military personnel obtain financing through conventional mortgage lenders. You can find information about homebuyer programs, mortgage assistance, and tax incentives at VA.gov.
