These programs assist the first-time homebuyers who do not have the resources to make a down payment on a home.
Lower down payment
Easier to qualify
May get lower rates
May be subject to income and property value limitations
Some programs which have government subsidies may have a recapture tax if the home is sold too early
What are the Benefits of Becoming First Time Home Buyer?
There are many questions to consider when a borrower makes the great decision to buy their first home, but one that we always want our borrowers to keep in mind is the benefits of becoming a first time home buyer.
Who likes paying taxes? A great advantage of owning a home is the option to deduct paid monthly interest, mortgage insurance payments, and home-related purchases from your tax returns.
It’s Your Home. Do What You Want with It:
Can you hear your neighbor cough through the wall that you share? Did you see an awesome new article about the “IN” color for your bedroom walls, but you can’t have it because you’re not allowed to paint? Ever have to hide your cat because the landlord didn’t know you had a cat? In a home that you own, there are no walls to share with your neighbors (provided it’s a detached home), you can paint whatever you want, wherever you want, and Puffball can roam around throughout the house regardless of who pops by.
Stable Monthly Payments:
A first time home buyer most often will use a fixed-rate mortgage product to finance their home. Unlike rent (which can increase from year to year with the renewal of a lease or the likely event of frequent moving,) stable monthly payments from a fixed-rate mortgage can provide peace of mind and can make it easier to plan, budget, and save.
A First Time Home Buyer Can Build Equity:
Owning a home is meant to be a long term commitment. Generally speaking, homes increase in value, and the longer you own your home and pay your mortgage, the more is paid against the principle balance. If the balance decreases, and the value of the home increases, the larger the equity! Meaning when you finally do sell your home, the more money you’ll put back into your pocket.
Understanding Down Payments as a First Time Home Buyer
A common misconception is that a borrower will need to put down 20% to finance a home. That is not always the case. There are loan programs available that will allow a borrower to finance a home with 3.5% down or even zero down. The more a borrower puts down, the smaller the mortgage, and thus more affordable monthly house payments. How much a borrower puts down is a judgment call, but we are here to help guide this decision. The key is making sure a down payment helps secure a comfortable monthly payment.
What Can You Afford in the Best Neighborhoods for First Time Homebuyers?
Without first knowing how much house you can afford, you will likely waste time or be severely disappointed. It’s not a great feeling to look at a home you love, only to find out the cost is out of reach, or to feel discouraged when you’re looking at homes you hate because you’re looking below your optimal price level. How will you find out the amount of house you can afford? Call one of our amazing Loan Officers who will help calculate what price range is affordable, what will stretch you too thin, and what’s aggressive.
Just fill out the quick form below and we’ll take it from there.
By submitting this form I am agreeing to be contacted by a representative of Supreme Lending Houston TX.