Buying a home is challenging with various steps, tasks, and requirements. But, with all of those to-dos are some benefits for a first-time home buyer.
Here’s what you need to know:
- As a first-time homebuyer, you are eligible for assistance from state programs, tax breaks, and federally backed loans
- Know what type of residence you are looking for (number of bedrooms, condo, townhouse, type of neighborhood)
- What you can afford
- How much money you are eligible to borrow
- If you will hire a realtor and who it will be
- If you will hire a lawyer and who it will be
- You will have to find a home, secure a loan, make an offer that is accepted, conduct a home inspection, and close on the property
- It doesn’t end when you move in – then there’s maintenance!
What constitutes a first-time homebuyer? According to the U.S. Department of Housing and Urban Development, a first-time homebuyer is:
- Someone who hasn’t owned a principal residence in 3 or more years
- Someone who hasn’t owned a principal residence, even if their spouse was a homeowner
- Anyone who is a single parent who owned a home with their ex-spouse
- A displaced homemaker who only owned property with their spouse
- A person who only owned property that wasn’t in compliance with, and cannot be brought into compliance with local or state building codes without building a new structure
Here’s what you’ll benefit from as a first-time homebuyer:
- FHA Loans. The Federal Housing Administration insures this type of mortgage offered by FHA-approved lenders.
- USDA Home Buyer Assistance Program. If the home you are buying is in a qualifying rural area, you may be eligible for this program.
- VA Loans. The U.S. Department of Veterans Affairs helps first-time homebuyers who are active-duty military members, veterans, and surviving spouses.
- Additionally, some lenders offer special loans
Also, first-time homebuyers are often eligible to withdraw from their IRA without incurring penalties.
As a first-time homebuyer, you may have many questions about the process. Therefore, we offer a free, no-obligation information session to answer your questions and give you a clear understanding of your situation. Click here if you would like to schedule your free, no-obligation information session.