Things Every First-Time Home Buyer Birmingham Should Know

The more you become familiar with the home-buying process, the more easily you can purchase the home of your dreams. For example, the major strain that the Florida first-time home buyer can save is the expenses in down payment. There are numerous programs available for first-time home buyers. All of them are briefed in this article here. We really would love to make the process of home buying a pleasant experience for you. Home Buyers Birmingham

-Grants for First-Time Home Buyers 

Many states have the programs available for first-time home buyers with closing cost and down payment assistance. This program could be in the form of less interest loan or a gift, sometimes referred to as grants. A grant is a gift which can be used only for a particular purpose. Governments wish to help buyers with modest means experience at an affordable home ownership. A special budget is assigned to government agencies for the same purpose. Based on your income level, you become eligible for state or federal first-time home buyer grants. 

-Programs for First-Time Home Buyers 

Almost all the states have the first-time home buyer programs. Many states offer an educational course that teaches in detail every program like lower interest loan and grants. Few of them are free courses and others are available at very little nominal fee. 

-Mortgage Loans for First-Time Home Buyers 

Though Florida mortgage interest rates have been very favorable over the past couple of years, while touching the lowest few years ago, still they remain major concern while buying your first home. The better part is that Florida mortgage lenders have established low interest loan programs for first-time home buyers. Using such a program, one can make huge savings in comparison with conventional Florida mortgage loans. 

-Additional Resources 

It is advisable for Florida first-time home buyers to look into programs offered by the Department of Housing and Urban Development, as these sometimes provide more favorable mortgage loan terms.  If you are planning to live in less urban areas, you might want to check out the USDA Rural Development Home Loan program – as it is at present the only true 100 percent home loan program available.

Lastly, the FHA 203(K) or Streamline FHA 203(K) program provides home buyers with funds to purchase a home and perform light renovations to the home’s exterior and interior – a nice benefit for those purchasing foreclosure or Bank REO properties. 

-Final Thoughts 

With the passing of the American Recovery and Reinvestment Act of 2009, first-time home buyers now benefit from a true tax credit in the amount of $8,000.  To receive this credit, you must not have owned a home within the past three years and must not make more than $75,000 (single) or $150,000 (married couple).  Unlike the previous $7,500 first-time home buyer tax credit, the $8,000 tax credit does not have to be paid back.  It is taken as a tax credit against your income tax payment, and remains a true “gift” to you as long as you remain in the home for a minimum of three years from the date of purchase.