Things Every First-Time Home Buyer Should Know

The more you become familiar with the home-buyingpart is that Florida mortgage lenders have established
process, the more easily you can purchase the homelow interest loan programs for first-time home buyers.
of your dreams. For example, the major strain that theUsing such a program, one can make huge savings in
Florida first-time home buyer can save is thecomparison with conventional Florida mortgage loans.
expenses in down payment. There are numerousAdditional Resources
programs available for first-time home buyers. All ofIt is advisable for Florida first-time home buyers to look
them are briefed in this article here. We really wouldinto programs offered by the Department of Housing
love to make the process of home buying a pleasantand Urban Development, as these sometimes provide
experience for you.more favorable mortgage loan terms. If you are
Grants for First-Time Home Buyersplanning to live in less urban areas, you might want to
Many states have the programs available for first-timecheck out the USDA Rural Development Home Loan
home buyers with closing cost and down paymentprogram - as it is at present the only true 100 percent
assistance. This program could be in the form of lesshome loan program available.
interest loan or a gift, sometimes referred to as grants.Lastly, the FHA 203(K) or Streamline FHA 203(K)
A grant is a gift which can be used only for aprogram provides home buyers with funds to
particular purpose. Governments wish to help buyerspurchase a home and perform light renovations to the
with modest means experience at an affordable homehome's exterior and interior - a nice benefit for those
ownership. A special budget is assigned topurchasing foreclosure or Bank REO properties.
government agencies for the same purpose. Based onFinal Thoughts
your income level, you become eligible for state orWith the passing of the American Recovery and
federal first-time home buyer grants.Reinvestment Act of 2009, first-time home buyers
Programs for First-Time Home Buyersnow benefit from a true tax credit in the amount of
Almost all the states have the first-time home buyer$8,000. To receive this credit, you must not have
programs. Many states offer an educational courseowned a home within the past three years and must
that teaches in detail every program like lower interestnot make more than $75,000 (single) or $150,000
loan and grants. Few of them are free courses and(married couple). Unlike the previous $7,500 first-time
others are available at very little nominal fee.home buyer tax credit, the $8,000 tax credit does not
Mortgage Loans for First-Time Home Buyershave to be paid back. It is taken as a tax credit against
Though Florida mortgage interest rates have beenyour income tax payment, and remains a true "gift" to
very favorable over the past couple of years, whileyou as long as you remain in the home for a minimum
touching the lowest few years ago, still they remainof three years from the date of purchase.
major concern while buying your first home. The better