Monday, March 25, 2013
First Time Home Buyer Programs
Have you ever heard of a first time home buyer program? This program could apply to you and could help you save money and get qualified. The basic idea behind such a plan is to increase your chance of acceptance, even if you can't afford all of the criteria of the traditional home leaser. Let's consider some advantages and disadvantages of Ohio first time home buyer programs.
First things first-yes, these loans can help you get into a house more easily than applying for a loan anywhere else. In addition, there are other advantages to a first time home buyer program that are hard to dismiss. For instance, these types of loans allow for very low down payment, or in the case of good credit customers, even no down payment at all. Furthermore, these loans can help to subsidize interest costs (meaning they lender pays all or part of the interest off), and can even forgive loans in certain situations. Other advantages of a first time home buyer program include grants, limit fees and the ability to defer payments.
Now here's a tough question to consider: Who can actually qualify to get these first time home buyer program loans? Obviously, customers that have never owned a home before can qualify, and especially if these households have not been able to find a home within the last three years. Now there are some income restrictions you must be aware of. Generally a first time home buyer program is meant for people with low income. Thus, if you make anywhere near middle class you may not qualify for a first time home buyer program.
There may be restrictions on the dollar amount of the property. Naturally, you wouldn't be able to buy an expensive house with such a charity-based a loan. There are also restrictions against buying the house purely as a real estate venture; this means you must actually live in the home as the primary resident. Lastly, this house must be in generally good physical shape and be free of any and all safety hazards.
Remember as you apply for a first time home buyer program, there are some technicalities that you cannot afford to forget. For example, you may not want a lower-value home in the first place. You may lose some benefits of the program if you sell your home too early. You may have to pay extra in taxes for such a loan. You may not get as many options as you would prefer when it comes to loan types. For example, you would only qualify for a 30 year ARM (Adjustable Rate Mortgage). You may even have to share increased home values because of the program details.