Your Ideal Home within Reach: A Look into First Time Homebuyer Programs

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One of the most important choices a person can make, especially for a first time homebuyer, is to decide whether to purchase a home or not. Acquiring real property is a huge investment and it’s a conscious choice that involves an amount of money, time and effort.

That’s why first time homebuyer programs are available to help any first time homebuyer who is considering purchasing a home.

You can look into the different types of homebuyer programs that are listed below:

HUD Home Buying Programs

The United States Department of Housing and Urban Development (HUD) offers assistance to home seekers at a local level. HUD has introduced home buying programs with the intent of educating homebuyers as well as help them go through the process of searching for a new home. HUD’s website lists down the home buying programs offered in specific areas across the U.S.

  • Good Neighbor Next Door

This program is also formerly called Teacher/Officer/Firefighter Next Door. In an effort to create dynamic communities and safer neighborhoods, HUD has recognized law enforcement/police officers, educators (pre-K to 12), firefighters, and emergency medical technicians and provides them incentives in the form of 50% discounts from the price list of a property or home. However, they must commit to reside in the property for at least 36 months and maintain it as their primary residence.

To participate in the Good Neighbor Next Door, you can check your state listings and submit an interest in buying a home of your choice. The main requirement is that you should be an educator, firefighter, law enforcement officer or emergency medical technician and can act in accordance with HUD’s program regulations.

  • Homeownership: For Public Housing Residents

Under this special homebuyer program, HUD aims to assist a public housing resident become a homeowner. Public housing residents are now able to turn their rent into mortgage payments.

There are various Public Housing Homeownership Programs being offered by HUD. Eligible residents may acquire assistance from a local Public Housing Authority (PHA). PHAs run voucher programs, and these vouchers can be used by the applicant for their monthly mortgage payments. The voucher covers real estate taxes, mortgage payments, utility bills, and maintenance costs.

To be an eligible applicant, an individual needs to be a first time homebuyer. The program also utilizes family income, accompanied by household expenditures, to compute the amount each participant receives on a monthly basis.

  • Indian Home Loan Guarantee Program (Section 184)

This loan program is specifically aimed at American Indian and Alaska Native families, Alaska Villages, Tribes, or Tribally Designated Housing Entities. These loans enable Native borrowers to construct, rehabilitate, refinance or purchase a home.

HUD’s Office of Native American Program’s Office of Loan Guarantee provides the home mortgage loans and guarantees them 100%. This is also HUD’s way of strengthening the financial footing of Native American tribes and communities.

  • Federal Housing Administration Loans

The FHA, part of HUD and completely self-funded government agency, offers loans to people who wish to become homeowners. FHA insures the loan so that lending institutions can provide homebuyers with lower down payments and closing costs as well as easy credit to qualify for.