A survey by Harvard Business School found 78% of baby boomers and millennials want to buy a home. The catch? Most ‘think’ they can’t afford one.
In many cases, this may be true. But the research also discovered many can. It found many had an income, credit rating, and time on the job good enough to qualify for the many first time home buyer programs and grants I’ll mention in this article.
Note: For more details, Google all phrases in bold. fritidshus
1. Federal Housing Administration Loan (F.H.A).
If you have a credit score of at least 580 you could qualify for a mortgage for as low as 3.5 percent of the price of the home.
F.H.A loans have helped more first time homeowners than any other type of loan.
2. United States Department of Housing and Urban Development (H.U.D).
H.U.D offers many first time owner grants and low interest loans, depending on the state, city or area you live in.
Note: For those who now live in public or government housing you may qualify to purchase the home, condo or apartment you now live in through the HUD Public Housing Homeownership Program
3. V. A (Veterans Administration) Loans.
If you’re an active duty service person or veteran you may quality for a no down payment low interest rate loan. The VA loan is the lowest cost mortgage on the market because you’re not required to pay for mortgage insurance.
4. The Good Neighbor Next Door Program.
This program for first time home buyers offers home for up to 50% off the retail price. To qualify you must be a teacher, police officer, fire fighter, or EMT. A $100 down payment is all that’s required.
You must commit to live in the home for at least 36 months.
5. Energy Efficient (or Green) Mortgage.
The energy efficient mortgage was created to help first time homeowners add energy efficient improvements to their home. These loans are insured through VA and FHA programs.