Interested in Becoming a Homeowner? Here’s How | Family Resource Guru

Interested in Becoming a Homeowner? Here’s How

Just because housing prices have risen doesn’t mean that the American Dream has floundered. Rather, the American Dream is still alive and well, with individuals of all classes and economic backgrounds able to attain economic prosperity and social success. One metric of such success is homeownership and all the benefits that come with it. Of course, to achieve this dream sometimes requires some aid and there are a great number of government programs to assist those who need it. The following is a look at some of those programs open to many first-time home buyers, low-income home buyers, and minority home buyers:

5 Great Programs for Those Interested in Becoming a Homeowner

  • FHA loan. FHA — Federal Housing Administration — home loans are the go-to program for the vast majority of American homebuyers as this program is specially designed to help first-time home buyers and those buyers who lack sufficient credit or have an otherwise less-than-ideal credit history. FHA home loans are so effective because the Federal Housing Administration will guarantee a portion of the amount which allows lenders to open up what might otherwise be stricter acceptance criteria. Many FHA loans allow borrowers to qualify for home loans with as little as a 3.5% down payment. 

  • USDA loan. Love the idea of moving out of the city and raising your family or retiring out in the country? If so, then you might be interested in the special home buyers assistance programs the U.S. Department of Agriculture has to offer. Despite the agency’s name, you don’t have to live on or plan to start a farm in order to qualify for a loan through this group. Instead, USDA loans are available to most who want to live in a rural area although there are income limitations. 

  • HomePath ReadyBuyer Program. HomePath ReadyBuyer is a unique program that is designed to support dedicated and sustainable homeownership. The way they do this is by offering applicants an online course that helps them prepare for homeownership. Upon completion, home buyers enjoy 3% closing-cost assistance on any foreclosed Fannie Mae property they purchase. 

  • Fannie Mae or Freddie Mac. These two home loan programs may have gotten a bad rep due to the 2008 housing bust, but they still remain two of the best programs for those home buyers who don’t have a lot of savings. That’s because this program requires just 3% down.  However, due to the 2008 recession, applicants for this program must have strong credit to apply. 

  • Good Neighbor Next Door. This one is an interesting one but it does depend upon the career choice of home buyers and where they want to purchase a home. The Good Neighbor Next Door home buyer’s program is run through HUD and will provide an incredible discount of 50% on a home’s list price if they purchase a home in a revitalized area. In order to qualify, applicants must serve in a government or public service role, such as a law enforcement officer, emergency medical technician, firefighter, or pre-collegiate teacher. 

If you’re feeling frustrated about your home search and loan application process, don’t despair! As noted by this list, there are a lot of programs specifically designed to help you reach your home ownership dream. With just some patience and paperwork, you too will soon enjoy walking through your own front door!