At a recent homebuyer seminar I conducted with a couple other real estate professionals, we discovered there were several misconceptions among potential first time homebuyers in regards to homeownership. Of these, the most common of which were needing a prime credit score of 700+ and requiring at least a 20% downpayment. While this may be true to get a better mortgage rate and avoid private mortgage insurance, it is not a necessity to be qualified for a mortgage.
With the cost of education and student debt both rising, most individuals simply don't have the means for a 20% downpayment. Fortunately for them, there are other options.
Homebuyer Financing Incentives*
FHA 3.5% Downpayment
Conventional 5% or 10% Downpayment
IHDA Illinois Welcome Home Loan $7,500 Downpayment Assistance
*For specifics or other available options you should speak with an experienced lender to find the best solution for you. Need a referral? Contact me below.
Home Seller Incentives
In conjunction with financing assistance, many seller's and their agents are offering incentives to both entice and make homeownership easily affordable for a first time homebuyer. These incentives include, but are not limited to: painting, repairs, closings costs, paying for an inspection etc.
Real Life Example
I have a listing here in Chicago's South Loop Neighborhood. Here, a 1 Bed/1Bath condo for $225,000 is a prime property for a first time homebuyer. To help them realize their goal of homeownership we are offering up to a $5,000 closing cost credit. Coupled with the $7,500 downpayment assistance mentioned earlier, a first time homeowner could recieve up to $12,500 at closing.
For more information on financing for first time homebuyers, please contact or connect with me on social media below.