Purchasing your first home can be a thrilling journey, and an incentive can help to lessen the burden. To qualify for this incentive, you don't need a massive pile of cash in the bank for a down payment. You also don't need a perfect credit score.
As a first time home buyer, there are specific scores to help you secure the fund needed to purchase your first house. If you want to qualify for these incentives, read ahead!
HomeReady Mortgage Program
The HomeReady Mortgage program is best for first time home buyers with a reasonable credit score of 620, with a minimum income and low cash reserves. This program is best for first home buyers, with a down payment of 3 percent. The program ends once your insurance equity reaches 20 percent.
USDA loan program
If you are considering a home in a rural area, you might qualify for 100 percent financing through the USDA loan program. This program does not require an immediate down payment, and the credit score requirements are a little less stringent compared to a conventional loan.
Energy efficient mortgage program
EEM is another incentive offering program that aims at improving the cost of energy efficiency. However, this will not affect your minimum down payment. Your lender determines your EEM benefit.
Federal housing administration loans
Another option for first time home buyers that have past credit challenges. Also, the down payment for the new home is minimal. This program is backed up by the government and allows you to qualify with a 3.5 percent down payment and a credit score of only 580.
97% LTV Mortgage
If you want to buy your first home, but unable to make at least a 20 percent, this program might be what you need. In a nutshell, this program allows you to make a down payment of only 3 percent. To qualify, you must pursue a fixed rate mortgage, and your home must be used as your primary residence and not as an investment property.
Many programs offer a mouth-watering incentive to first time home buyers. Not all programs would suit your need as a home buyer, and you must do in-depth research and discover a program fits.
So, if you are a first-time home buyer and you're yet to determine the incentive to go for, now is the appropriate time to start a hunt.
