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First Time Home Buyer Benefits

Who Qualifies for First Time Home Buyer Loans?

This may seem obvious. Good candidates for a first time home buyer loans are those who have never owned a home. Some program offers allow people who have not found a home within the last three years to take advantage of these special loan programs.
Certain income restrictions may apply to qualify for a subsidized first time home buyer loan. These loans are designed to limit access to people with low to moderate incomes.

What is a First Time Home Buyer Loan?

Programs vary by institution and where they are being offered, but in all cases are designed to help with the financial hurdle of buying a home.
First time home buyer loans may give financial assistance to qualified borrowers in the following ways:

  • Offer grants
  • Forgive loans
  • Defer payments
  • Allow for a very low or no down payment
  • Subsidize interest costs
  • Limit fees that lenders are allowed to charge

Not all of the aforementioned financial assistance will be available with every first time home buyer loan. Be sure to research first time home buyer programs in your area and talk to a trusted advisor about your options.
Even if you have bad credit you may qualify for a federal mortgage program.

First Time Home Buyer Loan Restrictions

One of the most common restrictions is a price cap on the property you are buying. This may limit the location of your housing purchase. Again, these types of loans are designed to benefit people who have the most need.
Also, you must use this home purchase as your primary residence and not as a rental property.
Finally, the home you buy will likely have to meet some physical requirements. The property must be in good condition and free from hazards such as asbestos or lead-based paint.

Explore Your Options

The first thing to do is to explore all your options. Compare a traditional mortgage with that of a first time home buyer loan.
Buying a home is a big step. Move wisely through your options and talk with an expert.