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Using First Time Home Buyer Programs to Purchase Real Estate

June 23, 2012

Article by Simon Volkov

Using First Time Home Buyer Programs to Purchase Real Estate – Real Estate – Buying a Home

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First time home buyer programs are intended to help individuals buy a house with fewer complications. For most, buying a home is the largest purchase they will make. Taking time to locate home buying programs can help reduce anxiety and help buyers make informed decisions.

An easy way to locate first time home buyer programs is conducting online research. Other options include consulting with a mortgage advisor or real estate agent. It can be beneficial to conduct research about buying HUD homes, Fannie Mae Homepath properties, along with learning about FHA and VA loans.

The Department of Housing and Urban Development dedicates an entire section to providing home buying information via their website at Visitors can browse financing options, locate housing counselors, and review available home buying programs.

HUD programs vary by state, but the majority of states offer HUD properties at reduced prices. One popular program offered through HUD is ‘Good Neighbor Next Door’ which offers discounted properties to police officers, firefighters, EMTs, and teachers. Incentives include discounts of up to 50-percent off published real estate listings.

First time home buyers can obtain special mortgage financing rates through the Federal Housing Authority. FHA loans are a good choice for those with less than perfect credit, as well as buyers who cannot afford large down payments.

FHA loans are also a good option for buyers that are self-employed, as well as borrowers who have filed personal bankruptcy within the past few years. One unique feature of FHA financing is borrowers are allowed to obtain down payment assistance from outside sources. This practice is prohibited with conventional mortgage loans.

Veterans and active duty personnel can take advantage of first time home buyer programs offered through the Veterans Administration. The VA offers no money down loans to qualified applicants and guarantees up to 25-percent of home loans over $ 144,000. Program details and available homes for sale are published at

Fannie Mae Homepath is another government sponsored program offering discounted residential homes. Properties consist of foreclosure homes located across the nation. Buyers can apply for financing through Home Path Mortgage and obtain special financing offers.

Down payment requirement for Fannie Mae Homepath properties is a mere 3.5-percent. This program also allows down payment assistance, along with closing cost incentives.

Buyers who purchase Fannie Mae homes requiring light renovation can apply for Home Path Renovation Mortgage loans that include additional funds to cover repair costs. Program details and property listings are available at

While first time home buyer loans are available, they might not be the best option. Some loans offset closing costs or allow minimal down payments, but these costs are subjected to interest over the duration of the loan. It is smart to spend time comparison shopping mortgage lenders to determine if first time loans produce significant savings or incur additional costs.

Oftentimes, first time home buyer programs place purchase amount restrictions which require buyers to purchase houses on the low end of the scale. Additionally, these loans are only offered to individuals who will use the property as their primary residence. Buyers wanting to purchase investment properties will not qualify for first time loans.

Buying real estate is a decision that requires careful thought and plenty of research. Take time to learn about available first time home buyer programs and compare to conventional home loans before making a final decision. Doing so can potentially shave thousands off the overall loan and minimize risk for loan default.

About the Author

California real estate investor, Simon Volkov shares information about a variety of first time home buyer programs via his website. Visitors can compare available programs and locate resources which allow them to make informed decisions. Learn more by visiting today.

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whereby the original author’s information and copyright must be included.

Simon Volkov

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