Young families are now living their domestic dreams thanks to a range of home loans designed with first time home buyers in mind. Gone are the days when bad credit or lack of funds prevented a person with little financial experience from purchasing a home. A lack of credit, bad credit, and mediocre employment are no longer hindrances to securing a home loan.

New mortgage options have popped up throughout the nation that have made it easier for first time home buyers to purchase their dream home. There are credit workshops, down payment assistance plans, home buying initiatives and grants earmarked especially for first time home buyers springing up everywhere. Many people are unaware of these home loans or or don’t know how easily they can get them.

Overview of First Time Home Owner loans

A paltry salary or a weighty student loan often deter young Americans from seeking a mortgage. The aforementioned persuade first time buyers to seek financial options to help overcome the burden of purchasing a home. There are a variety of programs that aid first time buyers, each one offering their unique benefits. Here are some of the ways that these programs and loans help aid first time homeowners:

-Loans that allow for little to no down payment

-Subsidize interest costs

-Grants

-Loan forgiveness loans

-Limit fees that lenders are allowed to charge

-Defer payments

First time buyers can rely on the government for financial assistance. The U.S. Department of Housing and Urban Development (HUD) gives states and municipalities money to distribute to low- and moderate-income families to put toward a down payment or closing costs each year. Prospective homeowners can obtain up to $15,000 for a home loan. Occasionally that money is even made available as a home loan that is completely forgiven if the home buyer promises to stay in the home for three to five years. Some programs offer up to 10% of the purchase price. To qualify for down payment assistance, a person typically can earn no more than 80% of a region’s median household income. Should homebuyers seek assistance from the government in such a manner they should get in touch with the National Council of State Housing Agencies or HUD.

Prospective homeowners should also inquire about home loan programs and grants for first time buyers with the community development office. Don’t overlook local community organizations and church leadership. They may know of housing assistance programs in the community.

Counseling Classes for Obtaining a Home Loan

The home-buying process can be confusing seasoned home owners. Familiarizing yourself with offers, counter offers, appraisals, closing procedures and other common homeownership aspects are important while on your search for a new home. For a free and laid back education on the most mortgage process feel free to come to a mortgage event arranged by Affiliated Mortgage. It’s here that prospective buyers can meet with loan officers and have all their pertinent questions answered in a receptive atmosphere.

Drawbacks of First Time Home Loan

For some first time home buyers, the aforementioned programs and loans are ideal. They are the ticket to home ownership that many a family has been searching for. Communities also benefit from first time home buyer loans – homeowners take care of their property, get involved, and contribute to the economy. That being said first time home buyer loans can also have their downsides.

Here are the most common challenges associated with a subsidized first time home buyer loan:

-Lower value home may not be the dream home you desire.

-Might lose some of the benefits of the program if you sell your home too soon.

-May have to pay recapture tax for some of the benefits you received.

-Might be limited to a short list of loan types (only 30 year fixed rate mortgages).

-You may have to share increased home values with the program.

Buyers with a credit score lower than 680 should look into the subsidized program. These days, you can get traditional home loans/ mortgages with very little down. Those with a FICO of 720 or better are advised to pursue a plain-vanilla mortgage.

For more information regarding home financing, get in touch with Affiliated Mortgage. To start figuring out which loan you’d qualify for, plug in your financial needs into the mortgage calculator.  

Young families are now living their domestic dreams thanks to a range of home loans designed with first time home buyers in mind. Gone are the days when bad credit or lack of funds prevented a person with little financial experience from purchasing a home. A lack of credit, bad credit, and mediocre employment are no longer hindrances to securing a home loan.

New mortgage options have popped up throughout the nation that have made it easier for first time home buyers to purchase their dream home. There are credit workshops, down payment assistance plans, home buying initiatives and grants earmarked especially for first time home buyers springing up everywhere. Many people are unaware of these home loans or or don’t know how easily they can get them.

Overview of First Time Home Owner loans

A paltry salary or a weighty student loan often deter young Americans from seeking a mortgage. The aforementioned persuade first time buyers to seek financial options to help overcome the burden of purchasing a home. There are a variety of programs that aid first time buyers, each one offering their unique benefits. Here are some of the ways that these programs and loans help aid first time homeowners:

-Loans that allow for little to no down payment

-Subsidize interest costs

-Grants

-Loan forgiveness loans

-Limit fees that lenders are allowed to charge

-Defer payments

First time buyers can rely on the government for financial assistance. The U.S. Department of Housing and Urban Development (HUD) gives states and municipalities money to distribute to low- and moderate-income families to put toward a down payment or closing costs each year. Prospective homeowners can obtain up to $15,000 for a home loan. Occasionally that money is even made available as a home loan that is completely forgiven if the home buyer promises to stay in the home for three to five years. Some programs offer up to 10% of the purchase price. To qualify for down payment assistance, a person typically can earn no more than 80% of a region’s median household income. Should homebuyers seek assistance from the government in such a manner they should get in touch with the National Council of State Housing Agencies or HUD.

Prospective homeowners should also inquire about home loan programs and grants for first time buyers with the community development office. Don’t overlook local community organizations and church leadership. They may know of housing assistance programs in the community.

Counseling Classes for Obtaining a Home Loan

The home-buying process can be confusing seasoned home owners. Familiarizing yourself with offers, counter offers, appraisals, closing procedures and other common homeownership aspects are important while on your search for a new home. For a free and laid back education on the most mortgage process feel free to come to a mortgage event arranged by Affiliated Mortgage. It’s here that prospective buyers can meet with loan officers and have all their pertinent questions answered in a receptive atmosphere.

Drawbacks of First Time Home Loan

For some first time home buyers, the aforementioned programs and loans are ideal. They are the ticket to home ownership that many a family has been searching for. Communities also benefit from first time home buyer loans – homeowners take care of their property, get involved, and contribute to the economy. That being said first time home buyer loans can also have their downsides.

Here are the most common challenges associated with a subsidized first time home buyer loan:

-Lower value home may not be the dream home you desire.

-Might lose some of the benefits of the program if you sell your home too soon.

-May have to pay recapture tax for some of the benefits you received.

-Might be limited to a short list of loan types (only 30 year fixed rate mortgages).

-You may have to share increased home values with the program.

Buyers with a credit score lower than 680 should look into the subsidized program. These days, you can get traditional home loans/ mortgages with very little down. Those with a FICO of 720 or better are advised to pursue a plain-vanilla mortgage.

For more information regarding home financing, get in touch with Affiliated Mortgage. To start figuring out which loan you’d qualify for, plug in your financial needs into the mortgage calculator.  

A Little About Affiliated Mortgage

By simplifying the mortgage process and providing clients with high quality home loans, Affiliated Mortgage strives to build unified and lasting communities. For over 30 years we’ve been supplying residents of South Dakota (Rated as top quality lenders Rapid City), North Dakota, Wisconsin, Wyoming, Colorado, and Arizona with low mortgage rates that enable them to achieve the milestone of owning or refinancing their own home.  We are headquartered in Rapid City, SD and we are the top mortgage loan provider to a variety of surrounding cities including, Ellsworth Air-force Base, Box Elder, The Black Hills, Ashland Heights, Rapid Valley, Black Hawk, Piedmont, Sturgis, Deadwood, Lead, Keystone, and Belle Fourche.  We also have a trusted presence in Sioux Falls, SDSpearfish, SD,Pierre, SD, Fargo, NDBismarck, NDCasper, WYGillette, WYCheyenne, WYDenver, CO, and Phoenix, AZ. Our trusted reputation is built on our sincere resolve to build relationships of trust, respect, and accountability. Our chief goal is to provide clients with the best loans possible so that we can welcome them into our communities. If you are looking for the best mortgage companies near you, Affiliated Mortgage is your answer.

A Little About Affiliated Mortgage

By simplifying the mortgage process and providing clients with high quality home loans, Affiliated Mortgage strives to build unified and lasting communities. For over 30 years we’ve been supplying residents of South Dakota (Rated as top quality lenders Rapid City), North Dakota, Wisconsin, Wyoming, Colorado, and Arizona with low mortgage rates that enable them to achieve the milestone of owning or refinancing their own home.  We are headquartered in Rapid City, SD and we are the top mortgage loan provider to a variety of surrounding cities including, Ellsworth Air-force Base, Box Elder, The Black Hills, Ashland Heights, Rapid Valley, Black Hawk, Piedmont, Sturgis, Deadwood, Lead, Keystone, and Belle Fourche.  We also have a trusted presence in Sioux Falls, SDSpearfish, SD,Pierre, SD, Fargo, NDBismarck, NDCasper, WYGillette, WYCheyenne, WYDenver, CO, and Phoenix, AZ. Our trusted reputation is built on our sincere resolve to build relationships of trust, respect, and accountability. Our chief goal is to provide clients with the best loans possible so that we can welcome them into our communities. If you are looking for the best mortgage companies near you, Affiliated Mortgage is your answer.

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