First Time Homebuyer Programs and Financing Options

The experience of buying your first home can be highly gratifying if you devote some time to researching well before making your purchase. Evaluating your financial situation, meeting with different lenders for financial aid, meeting real estate agents, plus studying your prospective neighborhood are important steps that you have to take.

A lot of people do not know that there are first time home buyer programs being given by several community and government facilities that will help them in the financial aspect of their home buying. Almost all states have some type of community development department that helps match buyers with homes and financing programs, though this may vary per state and region. If you are looking for financial assistance so you can procure your first home, here are some of the first time home buyer programs that may be able to help you:

First Time Homebuyer Program from the Housing Finance Authority: several banks and community assistant centers help people who have met the program's eligibility requirements based on income level and location of the home. Financing for purchase of new or existing home for moderate, middle, or low-income family is provide so that they can purchase a new or existing home.

Low Interest Mortgage programs: moderate or low-income families can be extended low-interest mortgage and approval is based on family size, household income, and credit history. Though programs may vary per state and region, this program is being offered by many of the established financing institutions.

Down-Payment Assistance programs: it is common for first time homebuyers to have inadequate funds for the down-payment required when buying a home. The book, "The Home Buyer's Question and Answer Book" by author Bridget McCrea, said that this program can give financial assistance in the form of interest-free second mortgages that will cover the cost of the down-payment. This program is can be availed of by moderate and low-income households, and the loan term period can be extended up to five years.

First-Time Homebuyer Counseling: many lenders and real estate agents conduct free workshops and seminars about the home buying process for first-time homebuyers. These can be coupled with a special rate for financing or other incentives for the first time buyer; attending these events can help you learn more about the process of buying a home and also offer you some financial rewards.

Seller Financing: many home buyers neglect to look into this option when they require a larger loan than what a lending facility has approved for them. Seller financing is a loan agreement between the property owner and the buyer. Loans are negotiated between the two parties, and the buyer will make the monthly payments as per the provisions of the loan to the seller. Getting the financing this way may be a better alternative from availing of bank and credit union loans.

There are several attractive financing options available for first time homebuyers, but it can be very easy to overlook the different programs available. Meeting with a qualified real estate professional in your area and shopping for the best rates and programs from area banks can help you narrow down the field of choices. Finally, don't forget to check with your local community assistance or development board if you are a low-income or moderate-income household for other incentives and specialized programs.

If you are a new homebuyer looking for houses for sale in Minnesota, using the internet is one of the easiest ways to locate what you are looking for. The MN MLS allows you to search by price and location, throughout the state.