Down Payment Assistance Loans for First Time Home Buyers
With the housing markets roaring back across the U.S., Federal, State and local agencies have teamed with down-payment assistance programs to invest in the growth of first time home ownership. Low interest rates and financial help that pays the down-payment requirement of a home loan is critical to jump-start house buying in a tepid environment.
Did you know that first-time homebuyer down payment assistance programs are available in nearly every state? Many states offer outright cash grants for the down payment, while others will provide a low- or 0% loan to meet the down-payment requirements of the applicable mortgage lender or bank. Many states have set up agencies to provide special programs to help potential 1st time home buyers overcome the obstacles in making their initial purchase.
In most cases, a loan officer that has experience with down-payment assistance loans will request documentation in an effort to verify your eligibility in your specific state. There are many instances when 1st time home buyers have the opportunity to become a homeowner with down-payment help from government or private grants. There are new opportunities with grants for 1st time home buyers being added all the time. It makes sense to save your money when becoming a homeowner because you may have new expenses that arise. And that's exactly why a $0 down home loan should be considered at the top of your list.
Typically they will issue a list of documents that you need to bring in to be reviewed by local underwriters. Common documents requested are:
- Copies of Recent Pay-stubs (1-month worth of pay checks)
- Copies of bank statements for the last 90 days (Copies of All pages)
- Copies of most recent statements showing your assets such as, stocks, bonds, 401(K), IRA, etc.
- Copies of last 2-years of tax returns (All schedules and pages of Federal Tax forms)
- Copies of last 2-years of W-2's or 1099's (whichever is applicable for how you get paid)
Maximizing Down-Payment Assistance Mortgages for First Time Home Buyers in the U.S.
Finding lenders that participate in down-payment assistance mortgage program is easy with the Nationwide Mortgages lending network. We automated the shopping process so that consumers can quickly locate mortgage companies that extend down-payment assistance loans. Once you submit a request for more info, we match you with several lending specialists to enhance your home financing experience online.
Renting vs. Home Buying - Doing the Math
We all need a home – somewhere that can serve as our escape from the world. But there is one thing that often becomes a major decision for anyone: whether to rent or buy a home. For many, buying a home can seem like an incredibly expensive proposition and something that is cost prohibitive and difficult to do.
However, if you do some math you may find that not only is home buying more affordable in the short and long term, but that understanding a few other basic equations can help you get more from the process of buying.
There are a few cutting-edge programs offered with some lenders that involve a rent-to-own-home loan. The transition from renting to owning doesn't have to be complicated anymore so educate yourself of the possibilities and talk to some financing specialists today.
To Rent or To Buy – Weighing the Pros and Cons
The first decision is simply whether or not you need to buy. Money is the obvious factor here, and figuring out if it is the right time for you to buy is important. Here are a couple of things to consider:
- How much do you have saved for a down payment?
- How stable is your current employment situation?
- How long do you plan on living in an area?
- What are you currently paying for rent?
- What will your eventual mortgage payment be?
- Have you been approved as a 1st time home buyer?
We'll touch on a few of those points more closely in a minute, but what we're getting at here is simple – in many cases, monthly rent costs just as much as a mortgage payment and sometimes more. Plus, you're essentially just spending money with no return. If you become a homeowner, you own an investment. Your mortgage payments are going into something that can be resold – often at a profit. It's worth buying if you are planning on being in an area for a while and if you can qualify for a good 1st time home buyer loan.
Math to Consider
When you are deciding to purchase a home, your monthly mortgage payments as well as the total price of the loan will both become a major factor that you need to pay attention to. Here are some things that you'll want to think about.
- First of all, your down payment is worth considering. The larger your down payment, the lower your monthly payments may be and the better the interest rate you can receive is likely to be. In short, saving up a larger down payment means a better loan in most cases.
- Your type of mortgage matters, too. While conventional wisdom says to go with a fixed rate mortgage, if you're only planning on living in a home for a few years then you might want to consider an ARM. This could get you lower interest rates for the first several years before it changes – and if you're moving by then, why not take advantage of it?
- Pay attention to your taxes, insurance rates, closing costs, and even your moving costs. This will help you ensure that you're ready to buy a home.
In short, you need to spend a few minutes doing some basic math in order to make certain that you're going to be making the right financial decision by buying a home. It's very rare that renting is a better choice.
More Government Resources for Down-Payment Assistance and First Time Home Buyers Help:
Down-Payment Help for Mortgages in Alaska
Ohio Programs for Down-Payment Assistance
Tennessee initiatives for First Time Home Buying
First Time Home Buyers Help in South Dakota
Down-Payment Assistance in Missouri
New York City Down-Payment Assistance Programs
Downpayment Aid for Home Buying in New Mexico