What Are the Various Programs Available for a New Homebuyer?

What Are the Various Programs Available for a New Homebuyer?

What Are the Various Programs Available for a New Homebuyer

Written by Holly

April 5, 2020

Purchasing a home is quite an intricate process. It’s not just the formalities and paperwork; it’s the fees, the terminology, and the number of people involved. Many potential home buyers in Spartanburg SC or anywhere in the world would love to rush over everything to avoid these intricacies. However, rushing won’t earn you any style points when it comes to your financial well-being.

Here are a few useful home buyer programs that new homeowners should never overlook no matter how they haste the home buying process.

Federal Housing Administration (FHA)

This is an ideal program for every American, particularly those who have a shaky credit history. The FHA guarantees a percentage of home loans, which allows lenders to broaden or widen their acceptance standards. Actually, with FHA backing, new homeowners can qualify for financing with as little as 3.5% down.

USDA

The U.S. Department of Agriculture (USDA) also has a home buyer’s assistance program. Surprisingly, you don’t have to reside on a farm to qualify. The program usually targets rural areas and offers 100 percent financing to potential home buyers. However, there are income limitations, which differ by region.

Good Neighbor Next Door

This program was initially referred to as the Teacher Next Door Program but was later expanded to incorporate emergency medical technicians, law enforcement, and firefighters, hence the snappy name “Good Neighbor”.

A HUD-sponsored initiative allows 50 percent discounts on the price of houses situated in revitalization areas. The home buyer just has to commit to residing in the home for a minimum of 36 months.

Energy Efficient Mortgage Program

One of the most popular home upgrade programs is the Energy Efficient Mortgage Program (EEM). EMM extends the borrower’s borrowing power when they purchase a home with energy-saving features. Basically, with an EMM backing, the lender can extend your loan limits.

Veterans Affair (VA)

The U.S. Department of Veterans Affairs has an initiative which helps veterans, service members, and surviving spouses purchase homes. VA loans usually require no mortgage insurance or down payment. However, though these loans are characterized by fewer requirements, VA lenders may add their own “overlays for security purposes.

Fannie and Freddie

Funny name it is, but Fannie Mae and Freddie Mac have contributed a lot in the home loans sector. These government-sanctioned firms partner with local lenders, to provide some reasonable mortgage options, for instance, 3% down payments.

Conclusion

Home buyers in Spartanburg SC who take advantage of one of these programs are guaranteed of accessing a home loan which has friendly and reasonable terms – less interest rate, low down payment, less closing cost, and extended loan limits.

If you reside in Spartanburg SC and wish to know more about these programs or wish to ease your home building process, Enchanted Construction can help. We promise to make the whole experience as pleasing and memorable as possible. Get in touch with us today on 864-895-0601!

Hands holding a  piggy bank and a house model

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