Having a home of your own is every youngster’s dream. Most of the times, you need to work for a lifetime to make this dream come true. A big mortgage liability and a lot of hurdles to jump over to actualize this dream will be coming into one’s mind while thinking of buying a property of your own. However, the current situation is very much favorable to the first time home buyers with many first time home buyer loans and assistance programs to help you to achieve this goal.
The first time home buyers can now opt for many special loans which are specifically aimed at borrowers of this category with many unique benefits on interest rates and in terms of payment. Such first time home buyer loans will help the youngsters to dream for your own home even without much up-front cash to invest.
However, it is essential to know the in and out of such loans before availing first time home buyers loans. Along with many benefits attached to it, there are some restrictions too there while availing such loans. Here we will discuss a few basic aspects of first time home buyer loans for you to have a better understanding of it.
What is first time home buyer loans?
It goes without saying that purchasing a home for the first time is a real big deal. It not only requires plenty of time and energy to find out your perfect choice, but also requires a lot of work and money to accomplish the purchase. Among all these hassles, jumping over the money hurdle is the biggest bane for a common individual. For such people who are struggling, first time home buyer loans is an God-given boon.
The primary objective of this category of loan is to financially aid the qualified borrowers by offering them the advantages of;
- Minimal down payment.
- Availing the eligible grants to reduce the burden.
- Interest rates kept at a bare minimum.
- Funding the interest cost by paying in full or part.
- Cap on the fee lenders usually charge with other loans.
- Flexibility in repayment and options to rescheduling payments.
Eligibility for first time home buyer loans
There are strict regulations for availing first time home buyers loans in order to avoid any misuse of this avenue. First time home buyer loans are meant to people who never owned a property before. In fact, there are some programs, which also offer loans to those who haven’t bought a house in the last 3 years or 5 years etc.
So, to apply for such a first time home buyer loans, you need to check your eligibility first. It is also possible that you may need to qualify some income restrictions to be eligible for such loans. As you can assume, these loans are primarily for those who belong to the low to medium income groups. It is also important to make a note that most of the first time home buyer loan programs will put a capping on the maximum price of the property you can purchase with it.