Given the current rock bottom house prices and low interest rates, we are very much in a buyer’s market. To add icing to the cake, there are many lucrative first time home buyer programs you may be able to take advantage of despite the fact that the first time home buyer tax credit expired in April of this year. These first time home buyer programs are offered at both the state and federal level and may come in the form of low interest loans or outright cash grants. Therefore, if you are looking to buy your first home, now could very well be the best time.
You may qualify for certain low fixed rate mortgage governmental programs with fair to marginal credit. Loans are available through the FHA with a 3.5% down payments while VA loans require zero down. Here is a run down of some of the key first time home buyer government programs:
1. FHA-This is a 30 year fixed rate program with a low interest rate. Contact a loan officer to help improve your credit rating if you have bad credit.
2.FHA $100 Down HUD Home Loan Program-This program lets you purchase HUD foreclosed homes with a down payment of only $100!
3.Streamline 203k Renovation Loan-This program lets you incorporate home improvements and repairs into your mortgage. This is great for foreclosures and short sales.
4. Kiddie Condo-This lets you co-sign a mortgage for your son and daughter without occupying the property.
5. 2-1 Buydown-This is a 30 year fixed loan with a low initial rate of 3.00% and an APR 3.12% as of May 7th, 2010.
6.VA-This a zero down program for veterans as well as active duty members of the armed forces including the Army, Navy, Air Force, Marines, National Guard, and Coast Guard.
Here are some more highly recommended first time home buyer programs for you to explore which require a 0-5% down payment:
1. Progressive Payment Saver Buydown Program-This is a 30 year fixed loan with an initial rate of 3.00% and 3.10% APR as of May 26th, 2010. Benefits include a low initial mortgage rate and increased purchasing power.
2.Fannie Flex 95% Financing Program-This is an FNMA 30 year fixed loan suitable if you are planning on living in your home for a long time.
3. Fannie Mae HomePath-This is an FNMA 30 year fixed loan for purchasing FNMA foreclosures and requires zero PMI (Private Mortgage Insurance).
4 .Fannie Mae Expanded Program-This program requires a 620 credit score.
5.Home Possible-This is a Freddie Mac Community lending program which provides financing up to a loan-to-value (LTV) ratio of 97% for low to moderate income borrowers.
6. My Community Plus – This is a 3% down program for nurses, health care workers, police officers, paramedics, firefighters, teachers, as well as active duty members of the armed forces and veterans. Benefits include more relaxed qualification criteria and discounts on closing costs.
7. USDA Rural Loan-This a zero down 30 year fixed loan and requires zero PMI. A credit score of 620 is required to qualify.
8.FirstHomeBuyers Down Payment Assistance Program-This program provides up to $25,000 for towards your down payment or earnest money deposit. Debts should be paid of to help qualify.
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