Young families are now living their dreams thanks to a range of home loans designed especially for them. Gone are the days when bad credit or lack of funds meant you can’t obtain a home loan to purchase the home of your dreams. While these factors may have been insurmountable factors in the past, they are no longer legitimate obstacles for the first time home buyer who is seeking a home loan. New opportunities have appeared throughout the nation thanks to an abundance of creative home loan (mortgage) programs to help the first time home buyer who previously had been denied access to the housing market. There are credit workshops, down payment assistance plans, home buying initiatives and grants earmarked especially for first time home buyers springing up everywhere. Many people either don't know about these first time home loans or grants or they don't know how easily they can get them. Overview of First Time Home Owner loans It’s difficult for young people to often buy a home since they are just starting out with their careers and may still be paying on a large student loan. Some people turn to first home buyer options to help with overcoming the money hurdles of the home loan. There are a variety of these programs to choose from and each one is different, depending on where they’re offered. The objective is this: first time home buyer loans give financial assistance to qualified borrowers. They have the options of doing this in the following ways: -Allow for a very low (or no) down payment -Subsidize interest costs (they pay all or part of it) -Offer grants -Forgive loans -Limit fees that lenders are allowed to charge -Defer payments The Government will help with a home loan for first time buyers Many first time home buyers are discovering they qualify for down payment or home loan assistance. The U.S. Department of Housing and Urban Development gives states and municipalities money to distribute to low- and moderate-income families to put toward their down payment or closing costs each year. Prospective homeowners can obtain up to $15,000 for a home loan. The good news is that sometimes, the money is made available as a home loan that is completely forgiven if the home buyer promises to stay in the home for three to five years. Some programs offer up to 10% of the purchase price. To qualify for down payment assistance, a person typically can earn no more than 80% of a region's median income. The first step for hopeful buyers seeking a home loan should be to contact their state housing finance agency. There are dozens of relevant agencies listed on the National Council of State Housing Agencies' Website at
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