Purchasing a home is probably the biggest expenditure you'll ever have. So, of course, trying to save money is a goal many buyers have. That’s why qualifying for first-time home benefits is so important.
First-Time Homeowner Program
A first-time homebuyer program is a resource or loan that is specifically designed to assist individuals and families in purchasing their first home. There are specific eligibility requirements.Benefits for a First-Time Homebuyer
Many benefits may be available to first-time home buyers, but these depend on the program and location. There are both federal and state programs.Some programs offer down payment assistance. This can be in the form of a grant, loan, or other funding.
Lowered interest rates may also be offered. Some programs offer tax credits or other tax benefits. This offsets the cost, or at least reduces taxes owed.
It’s important to check into programs. From Federal Housing Administration (FHA) loans to U.S. Department of Agriculture (USDA) programs, there are many plans available. Check with your mortgage broker.
Married Couple and Second First-Time Home Benefit
Usually, a spouse can’t be a first-time homebuyer if the person they are married to owns a home. That is because, according to property law, a spouse has an ownership interest in their spouse’s property due to marriage.But there are exceptions to this rule. For example, if you and your spouse no longer own a home, there is a possibility. You and your spouse can benefit from a first-time homeowner loan if three or more years have passed since you have owned a home. At that point, you can reapply for the program.
They also might be eligible for a first-time homebuyer program if they purchase a home in designated geographic areas. For example, the USDA has a program for buying a home in a rural area.
Real Estate Investment and First-Time Homeowner
Unfortunately, you can’t qualify for a first-time homeowner loan if you own a rental or investment property. You may not live in it, but the rental property still counts as a home.Displaced Homemaker Qualifies
A displaced homemaker can qualify as a first-time homebuyer.A displaced homemaker is an individual who has worked in the home. They provided unpaid service for the family and were not employed outside the home.
If you are a displaced homemaker who has only ever owned your first primary residence with a spouse, you are considered a first-time homebuyer.
Single Parent Buying a Home
A single parent who bought their first home with a spouse can qualify as a first-time homebuyer. Several programs and resources are available to single parents purchasing their first home without a spouse.Some of these programs may offer financial assistance through grants or low-interest loans. Other aid may be education and counseling to help single parents through the home-buying process.
Home Not Attached to a Permanent Foundation
You may own the structure, but if it isn’t attached to a permanent foundation, it’s not considered a home. If you live in a mobile home, you may be eligible for a first-time homebuyer program.How to Apply for a First-Time Homeowner Loan
Before you head out to find a loan, determine your budget. This will be based on your income, but also look at your expenses.Check your credit score and credit history. Regardless, if you meet the qualifications for a first-time homebuyer loan, you still must have good credit and a credit history.
Do a lot of research on loan options. There are many options available to first-time homebuyers. These include government-backed loans, conventional loans, and loans for low-income buyers.
