There may be several programs including grants, for first time home buyers in your area. Here are some examples:
- FHA loans- These government insured loans can be fixed rate or adjustable rate mortgages (ARM’s). Down payment required is usually 3.5% and the loan is subject to a maximum amount. These can be for single family homes, condos and manufactured homes.
- Veterans Administration (VA) Loans- If you’re a qualifying veteran or military personnel, you can obtain loans through the VA. Their loan programs include a no down payment option.
- Government Grants for First Time Home Buyers- Designed for low income first time home buyers, these grants have no strings attached other than the income requirements. To qualify, you must have low or moderate income. The amount you can receive is also calculated on the number of dependents you have.
- Tax Credits- At certain times, the government offers tax credit for first time buyers. For example, a qualifying first time buyer can receive up to $8,000 in tax credits in 2009.
- Local Programs- Check with lending institutions in your area. They may offer some first time home buyer concessions. For example, there may be programs if you live in a rural area or if you’re a teacher, nurse, fireman, etc. There also may be down payment assistance programs available for first time buyers.
The point is, as a first time buyer, you really need to research all of your options thoroughly and get all the financial assistance that’s available.