subject: An overview of first time homebuyers program in different states [print this page] An overview of first time homebuyers program in different states
The most challenging part of buying your first home is to save enough money to come to terms with the closing costs and the down payment of the mortgage loan. It is mostly seen that the prospective first time home buyers usually stay on rent. Is it possible for a personal to pay his rent and save enough money at the same time? Most prospective homebuyers find this virtually impossible to save enough money to make ends meet. Unlike the homeowners who are selling off their old homes and purchasing a new one, the first time home buyers lack the credit flow to pay off their down payment and closing costs. This has prompted the state governments to introduce a first time homebuyer's incentive to financially aid the people who are looking forward to realize their dream of buying a home.
Get help from the Federal first time homebuyer's incentive
Apart from the state home buyer's programs, the federal government also helps the home buyers through the Homes and Communities program of the US Department of Housing and Urban Development. The first time home buyers must spend some time educating themselves on the grants and incentive provided by the HUD. They must also make sure how many grants they're qualifying for under the HUD.
Some state first time home buyers incentives
Various states have different ways of providing grants to the people who are going to buy their first homes. Listed below are some states and their first time homebuyer programs.
* Alabama first time home buyer grants: The state of Alabama do not actually have any grants for first time home buyers but they do offer below market rates on the home loans that are designed for the first time home buyers. Depending on your income, sometimes your interest can even be 0%. This may not be technically considered as a grant but he effect is the same. The homebuyer ultimately gets financial aid while buying a home.
* Alaska first time home buyer program: The Alaska Housing Finance Corporation (AHFC) is the state agency that provides relief to the first time home buyers. In compliance with the local non profit organizations, AHFC allows grants to senior citizens so that they can make modifications in their homes and are able to live independently in their community. The Special Needs Housing Grant Program (SNHG) provides dollars to the Alaskan special needs population for constructing their first house.
* Arizona first time home buyer program: The Arizona Housing Finance Authority (AzHFA) made available $30 million in low interest mortgage financing to residents of Arizona. This kind of home loan financing is made available through the AzHFA's Mortgage Revenue Bond Program (MRB). They will offer a 30 year fixed rate home loan to a borrower at a rate that is 1% lower than the market.
However, there are some home loan lenders do not prefer working with first time home buyers and rather provide financial aid to homebuyers who already own a home. If you are in need of first time homebuyer's incentive, make sure you know the state laws in which you reside.
