#6 Zero Down Loans, Grants and Assistance for First Time Home Buyers, 2013
Yes! There is assistance and a lot of it. Everyone wants you to own a home. States and some cities offer assistance. Also the USDA loans are no money down, the VA for veterans is no money down and FHA is only 3.5% down. And some agencies offer loans to pay the FHA 3.5% down payment requirement so no money down.
The problem is that many people that could use the assistance don’t know that it exists or only find part of what’s available. I have found many many first time home buyers in the process of waiting for loan approval and know nothing of the assistance or the tax credits available when the assistance or grant is a perfect fit for their circumstances.
Not all of the lenders are qualified to work with the agencies that provide the assistance and many of the lenders that are qualified don’t have loan officers and processors that are practiced at working with the agencies and their systems.
The loan officers often being the first contact for people purchasing homes are trained to sell the loans their lender provides and so will recommend those loans knowing full well there are loans available at other lenders that better suit the borrowers situation.
Many of the loan officers avoid the grants and assistance because they are often more work and pay less.
And dont allow the media propaganda to pursuade you that the lenders are hard to please. The lenders want very much to make loans. They are in business to lend money. They are back to qualifying people and requiring the documentation as they did pre 2004, before the lending debacle. Thats a good thing.
Most agencies providing assistance require people attend a designated class or seminar to become familiar with the programs before they make their purchase. Each area offers a number of the designated classes. Some of the classes offered can be very informative. The challenge is choosing which class to attend.
Unfortunately the requirements for those presenting the classes and seminars are not adequate so many of the classes and seminars are not as informative as they should be. Question the agencies for the best classes and query the person that registers you.
How long has the presenter been giving the seminars and how many people have attended? If a real estate agent is presenting the seminar ask how long they have been in real estate. Five years minimum.
Some of the programs are restricted to particular geographical areas and locations. Some have income parameters such as a maximum income that borrowers must make less than. And some do not have funds available all year.
Clarify with the agency which seminar is required. There are web sites offering seminars claiming their seminar is required when it is not. They are in the business of collecting and selling your email and information they gather from you.
If your income qualifies and you are willing to live in the designated areas be sure to clarify if funds are available, how long they will be available, when the next batch will be available and, is there a wait list.
There is a tax credit available that rivals the tax credit offered as a stimulus in 2009 and 10. A very good tax credit that most loan officers and real estate agents will not explain to you. I will explain in the article Tax Benefits for First Time Home Buyers.
Use the link listed below to research the basics of the programs available in your State. If the programs look interesting you can gather the specifics when you interview a loan officer. The loan officer will explain which loans will best serve your situation and answer all of your questions. As you narrow down your options you will decide which loans to research.
Articles #11 Selecting Your Lender and Loan Officer and #13 Consultation Interviewing Loan Officers will outline a very specific process for interviewing Loan Officers and Real Estate agents and will explain that the loan officers you choose to interview should be experienced with the grants, assistance and loans for first time home buyers.
So subjects of the preliminary questions for the agency and loan officer are;
- Income limits
- Geographical parameters
- Available funds
- Participating lenders
- Required class
- What costs can the seller pay
And for your real estate agent; are you disadvantaged in any way using the loan you have chosen? Will the seller and sellers agent cooperate?
If you are new to this site consider looking over the articles available by reading the article First Read. This is a unique site. The information presented is useful and arranged in a very specific order to serve your finance and purchase process.
The information, Processes and Systems presented here originated in a seminar that over 25,0000 home buyers have attended. Now its all here to be accessed when convenient.
It will serve you to read the articles in the numbered order. The numbered order is the order in which you will use the information as you move through your finance and purchase process.
The information will build on the preceding articles so the recommended procedures make sense and you can move through your process one step at a time. My intention is to clarify and simplify what can be a very intimidating undertaking.
So the bottom line is the Loan Officer and lender you choose must be experienced with all loan types including FHA, USDA and the Grants and Assistance available in your area. The link below will take you to a list that will include your State.
Also be sure to read article #7 Loans For Home Buyers.
Don’t let anything or anyone deter you from your goal of owning your home.
The Methods and Information you find here have evolved through my thirty plus years of coaching and representing people purchasing their homes. I also taught this information and unique Methods to over 25,000 people who attended my Seminars For First Time Home Buyers. Now its all here for you on this site to visit at your convenience.
The articles will best serve you if you read them in order; #1 First Read