Have you put off buying your first house because you don’t think you can afford it? What you may not realize is that some first-time home buyer deals may make your purchase affordable and even cheaper than renting. Spend a moment to see if you can qualify for assistance programs that help new home buyers or first-time Home Buyer Deals. These are some examples of ways that first-timers can fund their own houses:
The Federal Housing Authority, of FHA, doesn’t actually make loans. They do underwrite mortgages, so regular mortgage companies have some assurance that the loans they make won’t be so risky. This government agency may offer backing to help reduce interest rates and the amount of the down payment you will need. In fact, your 580+ credit score can help you get a new mortgage on a first home with a down payment that could be as low as 3.5 percent. In addition, you may even qualify with a lower credit score, but you’ll need to supply a larger down payment. Before you decide that you can’t afford to buy cincinnati homes for sale, you should look into FHA-backed mortgages.
If you want to buy a house in certain rural parts of the country, you might qualify for a USDA loan. You don’t even have to buy a farm or ranch to qualify for the streamlined loan process that’s available to people who have a credit score that’s at least 640. If you’re credit score isn’t quite 640, you still may be able to get a USDA-backed loan, but you’ll need to supply more documentation.
VA and Good-Neighbor Loans
You can also find programs for veterans, police, firefighters, and other public servants or former public servants to buy homes.
Rent To Own
Besides various state, local, and federal programs that help people get mortgages, you might also consider a rent-to-own deal. Basically, you pay rent on a home just as if you were renting it. However, the current owner may charge you a bit more to set aside some money that can be used as a down payment when you want to qualify for your own mortgage.
You should carefully look into the details of any rent-to-own deals that you come across, and it might even be prudent to have the contract checked out by a lawyer first. While some rent-to-own deals are quite legitimate, some have caused problems for both the prospective buyer and the owners. To know more about us visit the website.