Home sales are increasing across the country, and when that happens, the prices of real estate typically soars sky high. Higher property prices and relatively few homes for sale in the market usually spell trouble for the first-time home buyers.
Experts say that these days, not only finding the right home is difficult, it can also become very expensive. Most people end up finding their dream house only to let it go away because they are unable to afford it.
We believe that homebuyers should never give up on their dreams of buying a home in such instances. There are financing programs out there that are designed just to help people cover the down payment of a real estate property and there are also private money lenders that help people in getting a more affordable loan.
So if you are an individual looking to buy a house for the first time anytime soon, below are a few programs that might be of benefit to you.
Down Payment Grants Based On Income
You can get money to buy a house easily, if only you know the right places to ask. City, state and county governments have pools of money dedicated to help people of all income levels in buying a house. To get this, your total income must fall below a certain benchmark. In states where real estate is expensive, this number can be higher.
Wells Fargo LIFT Programs
Wells Fargo’s LIFT programs offer grants that help you pay the down payment of a house. These grants are available to eligible home buyers in certain communities across the US. These communities include San Diego, Philadelphia, Bakersfield, New Haven and Detroit.
Grants having a value of $15,000 are available and they depend on where you live. In order to qualify for this you must earn an amount that is less than 120% of the median income for the area you are living in.
Grants For College Grads (And Other Special Groups)
There are some states and cities that offer housing grants to recent college graduates. This is done to attract educated workers to certain geographical areas. For example, Grant County in Indiana is a place that offers people with a bachelor’s degree and a full-time job in the county a grant of up to $5,000 which can be used to pay the down payment for a home. Ohio also offers a grant worth 2.5% of the property price to first-time homebuyers who have completed a bachelor’s degree in the past two years.
Incentive Programs For Certain Professions
In some states there are incentive programs available for members of the military, teachers, and people working in law enforcement. In Iowa, veterans and service members can easily apply for a home grant and receive up to $5,000 for closing costs or down payment. In Texas, teachers, military, firefighters and police are offered grants for 2% to 5% of the property price.
If you’re a current or past member of the US military, you are eligible to get a VA loan. With VA loans, there is no down payment necessary which is extremely helpful for first time home buyers.
Banks often times like to see home buyers put down 20% of the price of a home. This amount can be out of the reach for many, especially in areas where average houses easily are worth half a million dollars.
With a VA loan, not only are you able to purchase a house with no money down, but the credit requirements are less stringent. This means those with bad credit have a better chance at qualifying for a loan.
With FHA loans, you only need to come up with a 3.5% down payment. Like with a VA loan, you can also get away with having less than perfect credit. All you need is a credit score of 580 or above. If your score is lower than that but over 500, you’ll need to come up with a 10% down payment.
As you can see, there’s plenty of help offered to first time home buyers, so there’s no excuse to stop renting and make the leap to owning your dream home.