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First Time Home Buyer Programs

First time home buyer programs provide mortgage assistance and new home buyer tax credits to eligible applicants. Many programs exist for first time home buyers, so it is important to conduct research or consult with a mortgage advisor to determine which programs offer the best incentives and tax breaks.

One of the most prevalent first time home buyer programs is the American Recovery and Reinvestment Act of 2009 which expanded first time home buyers tax credit to $8,000 for housing purchases made prior to December 1, 2009. The first time home owner tax credit was later extended by the Worker, Homeownership and Business Assistance Act of 2009 to individuals who close the home purchase before July 1, 2010.

Individuals with less than perfect credit might be eligible for first time home buyer loans through the Federal Housing Administration. Borrowers who have previously entered into bankruptcy or foreclosure often find qualifying for an FHA loan is easier than obtaining a conventional home mortgage loan.

One of the biggest perks of FHA lending is the down payment requirement of 3-1/2 percent. The FHA allows borrowers to obtain down payment funds as a gift or loan from family, employer or charitable organization. This is the only home loan program that allows borrowers to receive down payment assistance in this manner.

The Department of Housing and Urban Development (HUD) provides first time home buyer loan programs and mortgage refinancing options. HUD home buying programs vary by state, but most allow borrowers to purchase HUD homes at deeply discounted rates.

HUD offers 'Good Neighbor Next Door' loans to teachers, law enforcement officers, firefighters and emergency responders. Good neighbor home buying incentives include a 50-percent discount from the real estate listing price. Visit hud.gov for additional information on HUD real estate, good neighbor next door loans, and first time home buyer incentives.

Military veterans and service personnel might qualify for Veterans Administration (VA) loans. Veterans and active duty military personnel can apply for VA loans under the GI Bill of Rights which guarantee up to 25-percent or a maximum of $104,250 of home loans and allows eligible borrowers to receive no money down financing. Additional information is available at va.gov.

Fannie Mae offers a wide variety of homes for sale through their Home Path program. Properties are acquired through foreclosure or deed in lieu of foreclosure and sold through assigned real estate agents at discounted rates.

Home Path® mortgage financing offers multiple incentives including no appraisal fees, low down payment, flexible mortgage terms, and home loan approval for people with less than perfect credit. Fannie Mae Home Path properties are available to owner occupied and real estate investors. Interested parties can obtain further information at FannieMae.com.

When it comes to buying houses, first time home buyers have more options than ever before. However, first time buyers should take time to investigate all home buying options to determine which program is best suited for their needs.

A good place to start is FederalHousingTaxCredit.com; a website presented by the National Association of Home Builders. Additionally, our first time home buyer article library provides additional information and resources to help readers make informed decisions.


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Published on January 23, 2010 at 03:35 AM

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