Applying for a first home buyer loan is both exciting and scary. Which home should you choose? Can you afford the payments? What if you don’t get approved for a first time home buyer loan? Is that the right first home buyer loan? Questions like these are no doubt swirling around your mind. Luckily, there are all kinds of first time home buyer assistance programs that can help you find the perfect Georgia first time home buyer loan. Here’s a look at just a few of the options.
Options for First Time Home Buyer Assistance:
These loans are guaranteed by the federal government, but you get them through a traditional lender such as Atlanta mortgage company, BrightPath. Basically, the government agrees to pick up the payments if you default on the loan, and that extra bit of protection makes it easier for lenders to offer great terms. Typically, with an FHA loan, you only have to make a 3 percent down payment. However, with a small down payment you do have to pay more interest, so you want to talk to a mortgage broker in Atlanta about all your first home buyer loan options.
A USDA loan is very similar to an FHA loan in terms of first time home buyer assistance. Namely, you don’t have to make a large down payment, and the credit requirements aren’t as strict as they are for traditional loans. However, while an FHA loan is backed by the Federal Housing Authority, USDA loans are backed by the US Department of Agriculture.
This means they apply to purchases in rural areas. This doesn’t mean you have to buy a farm, but typically, the home has to be in a small town or rural area. That said, if your dream is to move to the country and start farming, this program may be ideal.
Designed for veterans and active service members, VA loans are a great first home mortgage loan option. These loans offer low down payments or down payment assistance as well as low interest rates. In addition, VA loans also help to reduce closing costs, and they don’t have any penalties for early repayment.
Good Neighbor Next Door Program
This amazing program helps to get responsible citizens into areas that need revitalization. To participate, you need to be a law enforcement officer, a pre-K to 12th grade teacher, a firefighter, or an emergency medical technician. Then, you need to find a home in a qualifying area and apply through the US Department of Housing and Urban Development. If you get approved, you get a 50 percent discount on your home purchase, but you have to stay in the home for at least 36 months.
Discounts for Energy Efficient Homes
You can also get a discount for buying an energy efficient home. Basically, with an energy efficient mortgage, the lender takes into account the amount you are going to save on utilities when reviewing your application. For instance, if you are going to save $1,000 per year because of the home’s efficiency levels and your income is $50,000 per year, the lender reviews your application as if your income is $51,000.
Through this first time home buyer assistance program, you can also get a larger FHA or VA loan if you plan to make improvements to make the home more efficient. The increase depends on the cost of improvements, the median home value in the area, and a few other factors.
Contact Atlanta Mortgage Company Professionals at BrightPath
At BrightPath, we offer most of the above first time home buyer assistance programs and can provide you with the right guidance and advice. If you’re ready to become a Georgia first time home buyer, contact us today so we can help you find the right first home buyer program to fit your needs.