First-Time Home Buyer Programs
First-time home buyer programs are one way that young couples and previous renters can finally purchase their own home. A house is often a large undertaking regardless of one’s financial situation, and since buying a home is such a huge decision, first time home buyer programs can make the entire process less painless.
Most first-time home buyer programs are facilitated through banks and credit unions, though they can also be accessed through your real estate agent or broker. The specifics of a first-time home buyer program vary depending upon the lender and the applicant, but here are some of the more common benefits:
1. No Credit Checks
Most first-time home buyer programs advertise no credit checks at the start of the process. Although your credit score will become an issue once you’ve found a home and decided to buy, you can get pre-approved without one at the start. Also, bad credit or no credit circumstances will be less of an issue for first-time home buyers.
2. Greater Term Selection
First-time home buyers can usually choose between 10-, 15-, 20-, 25- and 30-year mortgages, all of which can be obtained at a fixed rate or an adjustable rate.
3. Leniency for Past Bankruptcy
In some cases, first-time home buyer programs can also be applied to people who are starting over again after a divorce. Past bankruptcy may be overlooked if there is a solid explanation for financial troubles. Since many people do file for bankruptcy after divorce, first-time home buyer programs can help them to get back on their feet.
4. Rate Lock Option
Most first-time home buyer programs offer a rate lock option, which means that they can be guaranteed a fixed interest rate for a specified period of time. This is invaluable to people who are just starting out, and need carefully organized finances.
5. 100% Financing
Many first-time home buyer programs offer 100% financing, which means that nothing is due at the time of signing. This gives an individual or family time to settle into their new home before payments begin.
If you are a first-time home buyer, you may want to look into these programs. Chase Bank offers an attractive first-time home buyer program, as do Bank of America, Member’s Choice Credit Union, Lending Tree and Nation Point.
If you have questions about first-time home buyer programs, or want to obtain several quotes from one source, visit iMortgageCentral and browse their articles, tips and lending options.