Buying your first home is a really exciting yet huge step forward. Having your own home means, you can plant your favorite plants, paint your walls with the color you love and also have your favorite floor options.
But before you indulge in home decoration and enjoy all the benefits of home ownership, you must go through the process of finding a suitable plan for your home mortgage. First time home buyers have to go through a lot of financial difficulties, from saving money for the down payment, to the closing cost and other moving expenses. But luckily, buying your first home in Wyoming comes with a lot of good options.
Wyoming State has a huge number of guidance programs that are specifically geared to the first time home buyers. Its Real Estate market is wide open for almost everyone from the low credit struggling families to the no credit bachelors.
Here are some of the terms and incentives that you need to know before buying your first home in Wyoming

Wyoming First-time Homebuyer Programs

Wyoming State has a huge number of guidance programs that are specifically geared to the first time home buyers. Its Real Estate market is wide open for almost everyone from the low credit struggling families to the no credit bachelors.

The Wyoming Community Development Authority (WCDA) provides low-interest rate mortgages and other special programs to first time home buyers to sustain the homeownership. If you are a first time home buyer and are buying a house in Wyoming, you should look at the WCDA programs for reliable less down payment loans with low and fixed interest rates.

How to Qualify for Wyoming First-time Homebuyer Program

It is important to understand the eligibility criteria for the first time home buyer in Wyoming. Wyoming County Development Authority (WCDA) defines first time home buyers differently than a layman. According to WCDA, a first time home buyer may have owned a home before, as long as the person hasn’t owned a home as a principal residence in the past three years, he is eligible to apply for the first time home buyer program.

These first time home buyers will be required to complete a Home Buyer Education Class through the Wyoming Housing network. Furthermore, in order to be eligible for most of the WCDA programs, you must be eligible for one of the federal programs like VA loans, FH loans or the USDA loans.

FHA Loan Terms

Federal Housing Administration (FHA) has helped millions of United State citizens to achieve their dream of being a homeowner. They also have some programs dedicated to first time home buyers in Wyoming.

FHA loans are usually provided by private lenders and are insured by FH. This insurance by the government agency provides some extra security and protection to lenders which is why FHA loans are available for people with lower income, down payment and credit score compared to traditional loans.

Most of the FHA loans require only 3.5% down payment and some of the home buyers qualify with no down payment at all. The credit score required for eligibility is 620 which is also much lower than traditional loans. Other eligible properties include FHA approved condos, unattached single family homes and multi-unit properties of up to four units.

VA Loan Terms

VA (Veteran Affairs) loans have perhaps the most advantageous terms but only military veterans and their spouses can apply for it. The VA loan offers zero down payment along with no extra private mortgage insurance payment.

USDA Loan Terms

The United State Department of Agriculture (USDA) also provide loans for the first time home buyers. But USDA loans are specified for the homes located in the rural areas only.

Usually there is no or a very small down payment required for the USDA loans. In addition, the interest rates are extremely low so that the people even with the lowest incomes can afford a house.

Eligibility For Wyoming Assistance

To be qualified for a WCDA loan, a home must sit on maximum 6 acres, be owned by the buyer as the primary residence, and be a single family home. Some of the WCDA programs include Mortgage Credit certificate, Spruce up Purchase, Wyoming Home Again and Home Stretch Down Payment Assistance. Let’s go through them briefly to understand them better.

1. Standard First-time Homebuyer

Features

  • Fixed rate mortgage
  • Can be used with a WCDA down payment assistance program separately

Eligibility

  • Property must be borrower’s principal residence
  • Borrower must complete homebuyer education class
  • The price of the property should not exceed county purchase price limit
  • The property must not sit on more than six acres of land
  • Family income should not exceed county income limits

How it works

This program offers first-time homebuyers very affordable mortgage rates. To accommodate the residents further, WCDA offers a “Home$tetch Down Payment Assistance” program along with a home loan. With this additional support, it becomes easier for homebuyers to get approved for almost any property they have their eyes on. Moreover, borrowers who buy a WCDA-real-estate-owned property, that have foreclosed, can qualify for even lower mortgage rates. 

Veterans and active duty members may also qualify for this Wyoming Assistance Program.   

2. Mortgage Credit Certificate (MCC)

Features

  • Federal Income Tax Credit

Eligibility

  •  Property must be borrower’s primary residence
  • Must be used with a house purchased through WCDA HFA preferred program or Advantage Program

How it works

The Mortgage Credit Certificate Tax Credit Program allows qualified borrowers a credit towards the federal tax liability of buying a home. The credit can be taken out over the complete duration of the loan and is calculated based on the total mortgage interest paid over the duration. This credit can be used over the entire term of the loan period.

A financial advisor can make you better understand the terms and conditions for this certificate so it is better that you consult a local financial advisor before signing up for it.

Also, keep in mind though that this Mortgage Credit Certificate (MCC) cannot be used at the same time as the First Time Home Buyer loan. So make sure to evaluate these programs separately and choose the one that will save you the most money.

3. Spruce up Purchase and Rehabilitation

Features

  • Low Closing costs
  • One loan covers both the purchase and the rehabilitation
  • Can be used with the Home$tretch Down Payment Assistance Program

Eligibility

  • Total cost of purchasing and rehabilitating the property should not exceed the first-time home buying program purchase limit.

A spruce up purchase and rehabilitation Wyoming program lets you both purchase and renovate a property. It has two distinct Spruce up Purchase Wyoming I and II programs. In order to be qualified for the first one, a buyer needs to qualify for both first time home buyer requirements as well as the income and purchase limit for this program.

How it works

Typically, a home that is purchased under this loan must be in need of at least $15000 worth of repairs. The loan can be used for heating, electrical, roofing, plumbing and non-structural repairs.

4. Home Stretch Down Payment Assistance Loan Program

Features

  • Down Payment Assistance Program
  • Maximum loan amount of $10,000
  • Loan is due when the house is refinanced, sold, or paid off
  • 0% interest on the loan amount
  • No monthly payments

Eligibility

  • A minimum 620 FICO score is required
  • Must be used with either the Standard First-time homebuyer program or Spruce up purchase and Rehabilitation Program
  • Borrower must contribute a minimum of $1500 to down payment

How it works

If the down payment for your dream house isn’t in your budget, the home stretch down payment assistance loan allows you to borrow up to $10,000 to help you with the down payment. To qualify for this loan program, your loan to income ratio must be below 41 percent. You may qualify for zero percent on this mortgage as long as you are able to pay $1500 to the process upfront.

5. Advantage / Wyoming Home Again Program

Features

  • Loan with no purchase price limit but the maximum loan can not exceed FHA, VA, USDA Rural Development (RD) limits
  • FHA, VA, USDA Rural Development (RD) financing can be used
  • Can be used with the Mortgage Credit Certificate (MCC) program

Eligibility

  • Minimum credit score of 620
  • Property should not be on more than six acres of land
  • Property must be borrower’s primary residence for at least past one year
  • $100,000 income limit for all counties and family sizes

How it works

The Advantage Program gives affordable interest rates to both previous and first time home buyers. This loan can be used for both purchasing and refinancing a home. It is also a good option for those potential buyers whose household income is slightly higher than the local income limit typically allowed for Wyoming Standard First-time Homebuyer Loans.

6. HFA Preferred Program

Features

  • There is no purchase price limit, but the maximum loan amount should not exceed Fannie Mae limits
  • Can be used with MCC (Mortgage Credit Certificate) Program

Eligibility

  • Property should be on no more than six acres of land
  • Property must of borrower’s primary residence for past one year
  • Borrower need to have a credit score of 620 or more

How it works

Just like the Advantage Program, HFA preferred loan program is available for both previous and first time home buyers. This loan option can be ideal for those first-time home buyers who want to purchase a property that is beyond the purchase price limits in their areas. However, household income limit still applies and should not exceed the limits for standard First-time homebuyers. 

This HFA preferred loan program can also be used with the MCC program for first time home buyers

The Bottom Line

In case you are not eligible for Wyoming Assistance Program, you can consider other nationwide programs available with lower interest rates especially designed for first-time homebuyers and for people with low credit score.

The Mortgage Experts at Affiliated Mortgage will find a mortgage deal for that is perfectly tailored according to your financial situation. Contact us Now to get a free Mortgage Consultation and purchase your dream home.

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