This article provides an overview of seven great programs available to first-time homebuyers

These programs are a great way for those who are new to purchasing a home to get the financial help they need to make their dream a reality.

The first program outlined is the US Department of Housing and Urban Development's (HUD) Good Neighbor Next Door Program. This program allows law enforcement officers, pre-K through 12th grade educators, and firefighters/emergency technicians to purchase homes in designated revitalization areas at a 50% discount. The home must be the buyer’s primary residence and cannot be used as rental or investment property.

The second program mentioned is the Federal Housing Administration’s (FHA) loan program. This loan allows first-time homebuyers to purchase a home with a 3.5% down payment. The FHA loan also has flexible credit requirements, making it easier for borrowers with limited credit history to obtain financing.

The third program discussed is the Department of Veterans Affairs (VA) loan program. This program helps qualified military service members and veterans purchase homes with no down payments and borrowing costs that are usually lower than conventional loans. Additionally, the VA loan limits buyers’ closing costs and requires them to pay interest only on the amount borrowed.

The fourth program reviewed is the US Department of Agriculture’s (USDA) Rural Development loan. This loan is designed to help low-income individuals purchase homes in rural areas. The loan has a 0% down payment and allows borrowers to pay interest only on the amount borrowed.

The fifth program outlined is the HomeReady mortgage program. This program allows borrowers to purchase a home with a 3% down payment and flexible underwriting qualifications. Additionally, the program encourages borrowers to take homeowner education classes and offers assistance to low-income and minority populations.

The sixth program provided is the Freddie Mac Home Possible Advantage mortgage. This program allows borrowers to purchase a home with as little as a 3% down payment and competitive interest rates. Additionally, the program enables borrowers to finance closing costs and repairs, making it easier for them to achieve homeownership.

Lastly, the article mentions the Mortgage Credit Certificate (MCC) program. This program is designed to help working class families afford to purchase their first home by allowing them to claim a portion of their mortgage interest as a tax credit. Buyers who meet all the requirements of the program can receive up to 20% of their mortgage interest back each year.

In conclusion, there are many great programs available for first-time homebuyers to help make their dream of owning a home a reality. Programs such as the HUD Good Neighbor Next Door Program, the FHA loan program, the VA loan program, the USDA Rural Development loan, the HomeReady mortgage program, the Freddie Mac Home Possible Advantage mortgage, and the MCC program all offer homebuyers access to financing that may otherwise not be available to them. Thus, those who are considering purchasing a home should look into enrolling in one of these programs in order to help them achieve their goal of becoming a homeowner.

This article was contributed on Oct 28, 2023