Buying a home can be challenging for a first-timer. After all, there are so many steps, tasks, and requirements, and you may be anxious about making an expensive mistake. But first-time homebuyers actually enjoy some special advantages created to encourage new entrants into the real estate market.
To demystify the process so you get the most out of your purchase, here is a rundown of what you need to consider before you buy and what you can expect from the buying process itself, plus tips to make life easier after you buy your first home.
The First-Time Homebuyer Advantage
Buying a home is still considered a key aspect of the American dream. As a first-time buyer, you have access to state programs, tax breaks, and federally backed loans if you don’t have the usual minimum down payment—ideally 20% of the purchase price for a conventional loan—or you’re a member of a certain group. And you may qualify as a first-time buyer even if you’re not a novice.
A first-time homebuyer, according to the U.S. Department of Housing and Urban Development (HUD), is someone who meets any of the following conditions:
- An individual who has not owned a principal residence for three years. If you’ve owned a home but your spouse has not, then you can purchase a place together as first-time homebuyers.
- A single parent who has only owned a home with a former spouse while married.
- A displaced homemaker who has only owned with a spouse.
- An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.
- An individual who has only owned a property that was not in compliance with state, local, or model building codes—and that cannot be brought into compliance for less than the cost of constructing a permanent structure.
Qualifying as a first-time home buyer doesn’t mean you’ve never owned a house. Meeting first-time home buyer qualifications unlocks many benefits, including low- or no-down-payment loans, down payment assistance, grants and more.
First-time home buyer benefits can include:
- low- or no-down-payment loan
- grants or forgivable loans for closing costs and down payment assistance
- federal tax credits.
- Better interest rate in the loan
If you meet any of these criteria and are thinking of buying your home, contact us right now and one of our experts will contact you in less than 48 hours..
The buying process is usually a little stressful for those who have never bought a home or bought it long ago. Many things have changed. But don’t worry, you are not alone, we are here to help you. Contact us now: Contact@MaraidLending.com