Buying a new home for the first time is a difficult task. Everyone will dream to have an own house. But to achieve this goal it requires certain factors. Home loans are the best opportunity to achieve this. Government grants for the first time home buyers help people to purchase a new house of their desire. A government grant is the loan provides to people every year to buy new homes. It helps as a down payment on your house.
There are different types of government programs for first time home buyers are widely available. These programs create steps to your dream house.
Government programs for First Time Home Buyers:
1. FHA Loan:
FHA is the short form of Federal Housing Administration. It is one of the most popular government housing loan programs by U.S. government. FHA insures loans and protection. The lenders will not experience any loss on the mortgage. FHA loans possess competitive interest rates; down payments will be low and lower closing costs.
2. USDA Loan:
USDA is another type of home loan provided by United States Department of Agriculture. The primary intention of this program is to provide house loans to residents in rural areas. People living in the countryside can apply for this kind of loans and can be approved quickly. It is the best opportunity to such people that they don’t need to go for any other loan types.
3. VA Loan:
The U.S. Department of Veterans Affairs provides this loan to the specially eligible people like Veterans, Service members, and their spouses to purchase new houses. This loan comes with unique features like very low down payment and interest rates. It does not require to pay private mortgage insurance. It accepts applications from people with low credit score also.
4. Fannie Mae or Freddie Mac:
These are the popular government-sponsored entities. They have a unique feature like they work with the local lenders and offers loans with mortgage options to low and medium income families. Their down payment rates are as low as 3% of the total price.
5. Energy Efficient Mortgage (EEM):
The name itself explains that these loans are provided in eco-friendly homes. The federal government supports these loans with the help of FHA or VA loans. People who have the dream to create an energy-efficient home with small down payment can apply for this loan.
6. Good Neighbor Next Door:
This program is a sponsor of HUD which focuses on providing housing loans to law enforcement officers, emergency medical technicians, firefighters and pre-kindergarten with 12th-grade teachers. The main benefit of this program is you can get 50% discount off to a house in specific regions like revitalization areas.
- Local First-time homebuyer grants:
Many local states and cities provide government loans to the first time home buyers with the spirit of Federal government. You can have a check on different types of loans you can avail with the place you live. It is one of the best government programs for first time home buyers