Buying a house and making it your home is a dream almost everyone cherishes, irrespective of the geographical boundaries. The American Dream refuses to diminish in sheen and size despite the lingering subprime dark clouds. However, the current situation is a goldmine of opportunity of a smart and savvy first time home buyer or investor.
First time home buyers can now opt for first time home buyers loans and buy their choice of home more easily. Moreover, simply because you are buying a home for the first time doesn't mean you need to opt for this type of loan. Most of these loans come with restrictions as well as strings attached. While these loans are perfect for some, they are a bad choice for most others.
First Time Home Buyer Loan - What is it?
Buying the first home is always a big deal. Not only does it take time and energy, it also requires hard work and money. Crossing the money hurdle is often the biggest bane for first time home buyers and for them, first time home buyers loan is god sent. The basic premise of this loan is to give financial help to qualified borrowers by:
1. Allowing for very low or no down payment at all
2. Fund the interest cost by paying part or all of it
3. Offer grants
4. Forgive loans
5. Cap the fees that lenders usually charge
6. Reschedule payments
Note: These loans that are available in your specific are may offer you one or all of the benefits listed.
First Time Home Buyer Loan - Who is eligible?
First time home buyer loans are usually dispensed to people who have never owned a house ever. But some loan programs also offer this loan to those who may not have bought a home in the past 3 years. However, you must check what loan is available for you specifically. It's possible that you may also have to qualify some income restrictions to become eligible for the loan. Typically, these loans are meant for people who belong to low and medium income groups. If you are well-to-do individual you simply won't be eligible.
First Time Home Buyer Loan - What are the restrictions?
Most first time home buyer loan programs have a capping on the price of the property you can buy. Essentially, you can't buy a very expensive property with the money you get from your first time home buyer loan. You will have to invest in a property that falls in the lower strata of the property market. This rule is to prevent misuse of this loan by those who are already moneyed. That's not all. You'll also have to make that property your main residence, and renting is completely out of question. Also, the property you buy must be in prime condition and without safety concerns.
Finally, it can be said that first time home buyers are perfect for some people as it gives them a chance to own a home and realize their lifelong dream.
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