Advantages:
- Lower down payment
- Easier to qualify
- May get lower rates
Features:
- May be subject to income and property value limitations
- Some programs which have government subsidies may have a recapture tax if the home is sold too early
Types of First-Time Homebuyer Programs
There are several programs in place to assist first-time homebuyers with their down payments and closing costs. Charitable programs, government-sponsored programs, and local and federal tax credits can all help lessen the sting of financing your first home.
Down Payment Assistance
A down payment is the sizable initial payment you make on your home and is a part of most mortgages. While many homebuyers believe they need a 20% down payment on their first home, lenders like Supreme Lending can issue loans with as little as 3% down.
DPA Grants
Down payment assistance grants don’t have to be repaid. Grant program requirements differ at a state and local level. To find out if you’re eligible for DPA grants, contact Supreme Lending.
Tax Credits
Federal and state deductions can lower your taxable income. If your mortgage is worth less than $750,000, you can deduct your mortgage insurance costs from your federal taxes.
Closing Assistance
Like down payment assistance, both government-sponsored and private programs can help with closing costs. Additional fees you pay at the end of your mortgage are called closing costs, which are typically 3-6% of your home loan.
Buy a Home with Supreme Lending
First-time homebuyers programs can support you with lower down payments, lower interest rates, and fewer barriers to entry. If you’re in the market to secure a mortgage on your first home, don’t leave money on the table. Talk to Supreme Lending about your options.
