For many first-time homebuyers, getting the keys to their first home can present many challenges. First-time homebuyer programs were created to make this process easier and more affordable.
What Are First-Time Homebuyers Programs
These loan programs were designed to offer more affordable rates and flexible requirements, such as lower credit scores, lower interest rates, and lower down payments. The most common types of loans for first-time buyers are conventional loans with a down payment of as little as 3%.
Some lenders will also offer first-time buyers down payment assistance to help cover down payment and closing costs. These are commonly structured as forgivable loans that do not require repayment as long as you stay in your home for the specified period and make regular monthly mortgage payments.
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The Benefits of First-Time Homebuyer Programs
If you’re looking to buy a home with benefits designed specifically for first-time homeowners, this is the best loan option. The benefits include:
- Lower down payments: Many first-time homebuyer programs will require down payments from as low as 3%, making it more accessible for buyers
- Low interest rates: Monthly mortgage payments will get lower over time as these programs can offer lower interest rates compared to traditional loans
- Assistance with closing costs: Closing costs can end up being a significant burden on first-time buyers so a program like this can offer some assistance in this area.
- Increased purchasing power: By offering lower interest rates and down payments, first-time buyers may be able to afford a more expensive home than a traditional mortgage would allow
First-Time Homebuyers Program options
The great thing about this type of loan is that plenty of options are offered through private lenders and are federally backed.
How to Qualify for a First-Time Homebuyer Program
Each lender will have their own requirements, but these will generally be based on:
- Income limits: Some lenders will set limits based on household size and the area of the property
- Credit requirements: These programs generally do not have very high credit score requirements
Purchase Your First Home With Avanti Lending
Achieve your dream of becoming a homeowner with a mortgage from Avanti Lending. With over 20 years of experience, we provide all our clients with tailored solutions according to their financial needs, open and honest guidance, and exceptional service. Start your home mortgage with us by contacting us at (954) 440-6274.
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