First-Time Home Buyer Guide: Everything You Need to Know


4. State and local first-time home buyer program

These are first-time home buyer mortgage programs and grants offered through the state or cities to assist the first-time buyers with their down payment or closing costs. Many cities offer these programs and grant to attract new residents to their cities.

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The aid comes in grants, and you do not need to repay them; however, some have income limits.

Therefore, making a home purchase, check with your realtor or visit your state’s housing authority website and learn more about the best home loans for first-time buyers in your area.

5. Good Neighbor Next Door

This program is provided by the United States Department of Housing and Urban Development. It is geared towards providing law enforcement officers, firefighters, teachers, and medical practitioners with housing aid.

If you are qualified for this program, you can receive up to a 50% discount on a home listed in Revitalization areas. And you must commit to living in that home for a minimum of 36 months.

6. HomePath ready buyer program

This is a program provided by Fannie Mae for first-time homebuyers who are interested in buying foreclosed homes owned by Fannie Mae. Before closing, you are required to take and pass Fannie’s Framework Homeownership course.

And after that, you can receive up to 3% closing cost aid with as little as a 3% down payment. This program is only available to first-time homebuyers who are committed to living in the house full time.

Although they are the best, it is next to impossible to find a HomePath property in the market because foreclosures are very limited.

7. Native American Direct Loan (NADL)

This is a VA program available to eligible Native American veterans looking to buy, renovate, or build homes on federal trust land. The NADL is different from VA loans because the VA is the mortgage lender. This type of loan does require a down payment, mortgage insurance, and the closing costs are low.

The good thing about NADL is that you are not limited to one property, as you can apply for more than one NADL. However, you must ensure that the properties are based in the eligible states.

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