Whether you are looking to purchase a house or not...you have either heard about or read about the current Real Estate market. You've heard about the mounds of homeowners in foreclosure, you've heard about Short Sales and Bank owned properties. Well, as a homebuyer what does that mean to you? Interest rates and home prices are low and now is a great time to be in your shoes. It is time to invest in you and your family!
In my previous blog, The Path To Homeownership: Determine Your Wants and Needs, I suggested Homeowners write down what they are looking for in a home based on their current situation. It's exciting to visualize about your own space...painting your own walls...landscaping your own yard...decorating the way you want! Once you have written down your wants and needs, it's time to do some research about financing!
I always advise my clients to apply to more than one Lender to get the best rates and payments possible! You should always compare and remember you are the prize! It's your business that they want...not the other way around. I believe that it is important to be aware of what is out there and accessible to most. I am talking about programs that assist homebuyers with downpayments and/or closing costs. If you have the patience, you can get assitance to help with your home purchase. The government distributes mounds of grant money to hundreds of organizations every year. The government also have their own programs that they have for assistance. It is important to talk to a Real Estate professional who is familiar with these programs and who will be able to point you in the right direction to take advantage of these programs.
Many non-profit organizations are dedicated to helping you become a homeowner. Some offer gifts, while others may come in the form of a loan. If it is a true gift...no repayment is due, which means no second mortgage or lien of any type. An important note is all of these programs have their own requirements that have to be met.
If it is a loan, for example, The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), have programs that offer low downpayments and they can include the closing costs and fees in the loan. The homebuyer must meet standard FHA credit qualifications in order to qualify for the loan. The FHA also have loans that will cover repair costs if you decide to purchase a fixer-upper. This is helpful if you are house hunting for foreclosures: be it short sales or REOs.
If you are a teacher (pre-kindergarten to 12th grade), firefighter, or law enforement officer, HUD offers the HUD Good Neighbor Next Door Program, which gives a 50% discount from the list price of the home. However, you must be willing to occupy the home for at least 36 months and the property has to be a single family resident in an area that HUD considers to be in a revitalized area.
There are hundreds of programs available to homebuyers, it does take time and a great deal of patience to research and qualify, but well worth it. If you would like additional information regarding these programs you can contact your Mother and Daughter Realty Team and we will point you in the right direction!
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