With house prices rising almost 30% over the last two years, it’s no wonder Americans are worried about being able to afford their dream home. For some home buyers, above-list offers and increasing costs have priced them out of their area entirely. We’ve taken a look at the best programs currently being offered to help lower your upfront housing costs.
FHA Loans
The U.S. Department of Housing & Urban Development has been operating the First Time Homeowners loan program since 1934, which helps lower closing costs, down payments, and even credit needed to acquire a loan.
With as little as 3.5% down, these loans are a great option for younger Adults looking to get their first home or long-term renters looking to enter the market. Speaking of credit – FHA loans have helped people with bankruptcies or other red flags on their record achieve loans time and time again.
If you think FHA loans are the right way for you to cut your costs when looking for a house, you can check out HUD’s page showing All the Programs for Your State.
USDA Loans
USDA loans are another great option for home buyers. The U.S. Department of Agriculture operates this loan program to provide low-to-moderate income households home loans in rural areas. The USDA offers up to 100% financing ($0 down payment!) and fewer closing costs to home purchases within their eligibility areas. The number of areas covered is staggering – check yours to see if you might qualify!
Other eligibility requirements include:
- Not exceeding the income threshold for your area
- Agreeing to personally live in the residence
- Be a U.S. citizen or qualified alien
If you think USDA loans can help you secure your dream home, you can look into the USDA’s list of approved lenders by state.
VA Loans
VA Home Loans help servicemen, veterans, and their families acquire affordable home loans. This has been a long term benefit for servicemembers, and could be key to helping you find a home that suits your needs without breaking the bank. With low interest rates and as little as $0 down, these also feature the lack of any need to pay Mortgage Insurance.
These have recently been opened up for certain National Guard members as well, so if you’ve served in the past be sure to check your regional VA loan center.
HCV Homeownership Program
The Housing Choice Voucher (HCV) homeownership program allows low income families receiving housing assistance to apply for loans in their area, as well as providing monthly assistance for homeownership expenses. There has also been discussion of adding the possibility of grants for down payments.
While not offered by every agency, these are available to all families admitted to the HCV program. With the capability of helping over 2 million low-income Americans find permanent homes, check with your local office today to see how you might be able to qualify.
