When it comes time to purchase a home, financing is what comes to mind to many potential homeowners, especially first-time home buyers. One of the biggest concerns is obtaining money for a down payment. A 2002 Fannie Mae National Housing Survey revealed widespread assumptions holding back potential homeowners needlessly. One of the biggest is that buyers need 20 percent of the purchase price as a down payment to purchase a home. However, with all the selection and availabilty of so many different programs, most require little or no down payment.

Both federal and local government programs offer assistance to eligible home buyers and most states have a housing finance agency, usually located in the state capital, which offers assistance. There are also programs available specifically for the first time home-buyer, the self-employed and for those with bad credit scores or previous bankruptcy. Below are just a few of the programs out there that can help make your dream of owning a house a reality.

• A Veteran’s Administration (VA) Loan lets eligible military personnel finance up to 100 percent of a home, even if your credit is imperfect. You can also be eligible for a fixed interest rate that is as good as, or better than conventional mortgage rates.
• The Mortgage Credit Certificate program allows first-time home buyers to take advantage of a special federal income tax credit. This program allows buyers credit in qualifying for the tax advantage they’ll receive after they purchase the home.
• An FHA (The Federal Housing Administration) Loan requires less than three percent as a down payment. FHA-insured loans offer many benefits and protection such as easy qualification and home protection. Should you encounter hard times after buying your home, the FHA has many options to help you keep you in your home and avoid foreclosure.

These are just a few of the many programs and types of financing options available. With so many programs to choose from it is always a good decision to consult with a qualified professional before making a decision to make sure that the program is right for you and fits in your budget.

This entry was posted on Tuesday, November 6th, 2007 at 10:04 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed.