Skip to main content

4 Most Cost-Efficient Ways to Buy a Home



Summary: Struggling to save up the money needed to buy your home? Here are four federal programs through which you can obtain all the financial assistance.

Buying a home is a huge decision. It might take a lot of time and money to make sure you achieve your goal. Thankfully you can get help from Uncle Sam.

There are a number of federal programs that offer a lot of assistance to the residents of USA who wish to buy homes. Here are a few of them for you to check out:

Veterans Affairs Home Loan

If you are a veteran, an active military member, a reservist, or a spouse of a military member, you can qualify for a VA loan to buy your home. You don’t have to worry about making any down payment to get your loan. Nor do you have to pay any mortgage insurance that can add up to your monthly payments.

Although it is not the U.S. Department of Veterans Affairs that provides these loans, it guarantees a significant portion of the loan to protect the lender’s investment in case the borrower defaults. However, you will have to contact only VA-approved lenders if you want to apply for a VA loan. You can find many through VA live transfer leads.

Housing Choice Voucher Homeownership Program

It may not be easy for everyone to afford mortgage payments every month, when it comes to buying a home. And then there are also the home ownership expenses that include your property taxes, utility bills, insurance, and maintenance charges you need to pay for. Thankfully there is a way to tackle this – the HCV Homeownership program. 

Administered by the local public housing authority, this program will give you vouchers that you can use to cover your monthly homeownership expenses and a significant portion of your monthly mortgage payments. However, you will have to qualify and secure a 30 year Fixed Rate loan from a bank. You will also have to pay up the 20 percent down payment and the closing costs that amount to 6 percent of your purchase price.

This assistance is available for a span of 15 years. Nevertheless, if you fall into the category of elderly/disabled, you can avail the assistance throughout the term of your mortgage.

Rural Development & Community Facilities Program

This program is administered by the U.S. Department of Agriculture to help low-income families buy homes in rural areas. You will get 100 percent financial assistance without having to worry about making the down payment or paying up for the closing costs. Nevertheless, to qualify for this program, you will need a decent credit history and should be able to afford your monthly mortgage payments and home ownership expenses.

Federal Housing Administration (FHA) Mortgage Program

If you cannot afford the 20 percent down payment that most conventional mortgage lenders ask for, your best option is to apply for an FHA loan. You can get all the financial assistance you would need to buy your home just by making a 3.5 percent down payment. Nevertheless, you will have to pay up mortgage insurance, both upfront and annual. Guaranteed by the Federal Housing Administration, these loans are easy to qualify for and are available to even those borrowers who don’t have a decent credit history.

Buying a home need not be a goal that is unachievable. There are many programs that you can find assistance from. All that you need to do is explore your options, find out which ones you qualify for, get your documentation ready, and apply for the same.

Comments

Post a Comment

Popular posts from this blog

4 Things to Check Before Taking a Second Health Insurance Plan

Summary: How happy are you with your current health insurance policy? Would you like to avail more benefits? How about a second health insurance plan? Find out what you need to do before buying one. Not happy with your current health insurance plan? Looking to buy a second one that will cover your parents? You can do that. But before you do, make it a point to analyze your financial situation and your coverage requirements. Your earnings, your lifestyle, the number of members in  your family, your existing coverage, your current illnesses – everything matters when it comes to choosing a second health insurance plan. You can check out various health insurance policies by contacting providers through health insurance live transfer leads . If you are worried about managing multiple health insurance policies, it is not that tough. In fact if you purchase the best one, you can opt for some of the best treatments in the best of the hospitals, without paying anything from y...
Post a Comment
Read more

Learn Basic Ways to Finance Home Repairs

Summary: Are you looking at ways to finance your home improvement project? Taking out a home improvement loan is not your only option. This article will tell you about many others. A home improvement loan is probably the best way to finance your home repairs. Similar to personal loans, you can use them for your home improvement projects. They come with fixed interest rates and a set repayment period, which could be anywhere between three and five years. Many home improvement contractors can lead you to lenders who offer home improvement loans. You can either go for a secured loan or an unsecured one. A good credit score however, is a must for unsecured loans. The process of applying for a home improvement loan is quite simple. It is also easier to get the funds if the approval process of your lender is straightforward and fast. You might have to pay an origination fee that might amount to about 5 to 6 percent of your loan amount. But you will still get the loan without most...
Post a Comment
Read more