Buying a new home is an exciting step in life, but it can be overwhelming too. Expenses add up quickly, so it’s important to know about the ways you can get financial help. This article will go over one of the most popular programs that people turn to for assistance in buying their first home.

Federal Housing Administration (FHA)

The FHA has been in business since 1934, helping people across the country become homeowners. The FHA works with Housing And Urban Development (HUD) to secure affordable loans, so that your lender can get you a better deal. So if you’re looking for low down payments, low closing costs, and easier credit qualifying, this is definitely an option you want to explore.

Find Out How Much You Can Afford

This is the first step to take when trying to become a homeowner. There’s a few things to keep in mind here — your income, credit rating, monthly expenses, and the down payment and interest rate of the loan.

Get Your Credit Score

Good credit is one of the most financially rewarding things you can have in life, so it’s important to know where you stand. This score will also help determine how much money you can borrow, as well as the interest rates that you will pay back.

Go to Annual Credit Report for a free credit report check.

Counseling Agencies

HUD offers housing counseling agencies across the country, so they will be a huge help for you. Whether it’s advice on buying a home, renting, credit issues, or even defaults and foreclosures, they’re a vital source of information.

Go to HUD Counseling Agency Finder and select the state you live in to learn more.

How FHA Helps Senior Citizens

If you’re 62 or older, the FHA Reverse Mortgage might be a good choice for you. If you live in your home and own it outright, or have a low loan balance, the FHA Reverse Mortgage lets you turn some of your equity into cash.

Important Resources

HUD has a series of videos that guides you through the process of credit and home buying.

Go to HUD Webcasts to learn more about the basics of home buying. For families currently living under the Housing Choice Voucher Program that want counseling on buying a home, click here PHA Locator to locate your local PHA.

The big picture on becoming a first time homeowner is that it can be both exciting and exhausting. No one likes to stress about how they’re going to afford a good place to live, so it helps to know where you can get the help you need.