Purchasing your first home can be a significant landmark in the timeline for the lives of many, and a great sense of accomplishment can be experienced if you find the right home for the right price. Sure, some complications also exist for home buyers – property taxes and maintaining a residence can be pretty pricey, but the many advantages of owning a home, in most cases, can make these financial drawbacks seem less overwhelming. The majority of first time home buyers will need to seek loan services to assist with their home purchase. Whether it’s with home loan services, a mortgage lender or a down payment loan, a multitude of different loan options exist for first time home buyers.
The United States Federal Government provides many lending services for first time home buyers through the Federal Housing Administration (FHA). These federal loans include FHA home loans, and FHA down payment assistance programs. Various loan officer requirements exist for these loans; for example, the FHA does not mandate a minimum credit score; instead, each borrower’s creditworthiness is considered in context. The FHA requires a down payment of just 3.5% of the purchase price of the home – a fraction of the percentage that is typically required on most other home loans.
Other federal home payment assistance options exist for specific categories of U.S. citizens, such as the Veterans Administration (VA) Home Loans. VA home loans are provided for U.S. military veterans by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms. There are rules and regulations to these loans as well, and they are also described under many loan officer requirements. State regulated home payment benefits exist, as well. For example, in the State of California, The California Home Buyer Down Payment Assistance Program provides a deferred-payment junior loan option. This assistance can be provided for up to 3% of the purchase price, or appraised value, whichever is less – to be used for a down payment and/or closing costs.