Top programs for those who are trying to buy/purchase a home
Thinking about buying a home? We have information that can help! Got questions? Talk to one of our Mills Realty Brokers/Agents!
When purchasing a home or any property, there are many programs that can help you achieve that goal. Our brokers can help you through the process and help get you the help you need.
Programs to help would be home owners are provided by many government and private institutions to service the public. We have put together the top 9 programs whose mission is to help serve the public.
1. FHA LOANS
FHA loans have been helping people become homeowners since 1934. How is it done? The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal.
- Down payment as low as 3.5% on 1-4 unit properties.
- Additional benefits for seniors 62 or older
- Low closing costs
- Easy credit qualifying 600 + (590 is possible in certain situations)
- Energy improvements can also help you save money on the property
2. USDA LOAN
This program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The program provides a 90% loan note guarantee to an approved lender in order to reduce the risk of extending 100% loans to eligible rural homebuyers.
- Meet income-eligibility
- Agree to personally occupy the dwelling as their primary residence
- Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
- Have the legal capacity to incur the loan obligation
- Have not been suspended or debarred from participation in federal programs
- Demonstrate the willingness to meet credit obligations in a timely manner
- Purchase a property that meets all program criteria
3. VA LOANS
VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide assistance to find a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.
Your length of service or service commitment, duty status and character of service determine your eligibility for specific home loan benefits.
- You must have satisfactory credit.
- Interest Rate Reduction Refinance Loan (IRRRL), if you have an existing VA loan.
- Native American Direct Loan (NADL) Program, if you have a Certificate of Eligibility.
- Grant is permanently disabled related to your military service.
4. Good Neighbor Next Door program (For first responders)
Law enforcement officers, pre-Kindergarten through 12th-grade teachers, firefighters and emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD’s Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return, you must commit to live in the property for 36 months as your sole residence.
- Homes located in revitalization areas
- Qualified broker/Agents at Mills Realty to Check the listings for your state.
Contact one of our Mills Realty Broker/ Agents to help you with the process.
5. Fannie Mae or Freddie Mac (Home Path)
The program gives would-be buyers the opportunity to earn up to 3% in closing cost assistance toward the purchase of one of Fannie Mae’s HomePath properties, listed on HomePath.com. The for-sale properties featured on the website are foreclosure homes owned by Fannie Mae. Contact one of our Mills Realty Broker/ Agents to help you with the process.
6. Energy Efficient Mortgage (EEM)
This type of loan’s purpose is to help you add improvements to your home that will make it more environmentally-friendly. The federal government supports EEM loans by insuring them through FHA or VA programs. The key advantage to this grant is that it allows you to create an energy-efficient home without the need to make a larger down payment. The amount is rolled into your primary loan. Contact one of our Mills Realty Broker/ Agents to help you with the process.
WHO BENEFITS from the ENERGY EFFICIENT MORTGAGE?
- Qualify for a larger loan on a better home!
- Get a more comfortable home NOW.
- Save money every month from Day One.
- Increase the potential resale value of your home.
- Sell your home more quickly.
- Make your house affordable to more people.
- Attract attention in a competitive market.
- Get all the EEM benefits without moving.
- Make improvements which will actually save you money.
- Increase the potential resale value of your home.
7. Federal Housing Administration 203(k)
If you want to purchase a fixer-upper, the 203(k) rehabilitation program may be a solid fit.
This type of loan, backed by the FHA, takes into consideration the value of the residence after improvements have been made. It then lets you borrow the funds you’ll need to carry out the project and includes them in your main mortgage.
Limited 203(k) Mortgage
FHA’s Limited 203(k) program permits homebuyers and homeowners to finance up to $35,000 into their mortgage to repair, improve, or upgrade their home. Homebuyers and homeowners can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or an FHA appraiser. Homeowners can make property repairs, improvements, or prepare their home for sale. Homebuyers can make their new home move-in ready by remodeling the kitchen, painting the interior or purchasing new carpet.
The Section 203(k) program is FHA’s primary program for the rehabilitation and repair of single-family properties. As such, it is an important tool for community and neighborhood revitalization, as well as to expand homeownership opportunities.
8. Native American Direct Loan
What is an NADL?
VA provides direct home loans to eligible Native American Veterans to finance the purchase, construction, or improvement of homes on Federal Trust Land, or to refinance a prior NADL to reduce the interest rate.
This first-time homebuyer grant also offers low closing costs and a 30-year fixed-rate mortgage.
Eligible to Use the NADL Program?
- You must have a valid Certificate of Eligibility to be eligible for the VA home loan benefit and have available entitlement. Contact one of our Mills Realty Broker/ Agents to help you with the process on how to get a Certificate of Eligibility.
- The loan must be to purchase, construct, or improve a home on Federally-recognized trust, allotted lands, Alaska Native corporations and Pacific Island territories.
- You must occupy the property as your home.
- You must be a satisfactory credit risk.
- Your income and that of your spouses, if any, must be shown to be stable and sufficient to meet the mortgage payments, cover the other costs of owning a home, take care of other obligations and expenses, and have enough left over for family support.
9. First-time homebuyer grants and programs
In addition to the grants and programs provided by the federal government, many states and cities offer help for first-time homebuyers. Contact one of our Mills Realty Broker/ Agents to help you with the process.
Before purchasing a home, let our brokers check state or city’s databases for information on housing aid available in your area.
You might also consider contacting one of our real estate broker/agent or consultant approved by the state to learn more about grants and programs that could fit your situation.
Figure out how much you can afford With the assistance of our skilled brokers/Agent at Mills Realty Inc. Contact one of our Mills Realty Broker/ Agents to help you with the process. What you can afford depends on your income, credit rating, current monthly expenses, down payment and the interest rate.