Whether American or Latino, owning a home is the ultimate dream of everyone for which very little desire overrides. Aside the feeling of fulfillment with which owning a home brings, it also provides for one a natural sense of freedom and privacy. Despite these lovely feelings with which ownership of a home is accompanied, it is however surprising that not many individuals have been able to accomplish the utmost target of being a first time home owner.
The result of a survey by rental service apartment list had however confirmed that a whopping 80% of the millennial rentals population desire but are unable to own a home citing non-affordability as the major cause of constraint. Is that to say that the government or private sector is unaware or insensitive to the plight of these many aspiring first time home owners? Definitely Not!
Poor access to information, rather than finance; I will say is the constraining factor for which many aspiring first time home owners still remain tenants till date. This is because many Hispanic first time home buyer programs offers a variety of grants and assistance designed to assist you land a great mortgage and thus own a home. Such first time homeowners grant programs include but are not limited to:
1. Federal Housing Administration (FHA) Loan: – this is one of the numerous house ownership facilitating programs undertaken by a subsidiary of government agencies. The FHA is an agency within the U.S Department of Housing and Urban Development with offers which provides a layer of protection to lenders in such a way that prevent loss even when you default on mortgage. The FHA loans typically come in competitive rates with smaller down payments and closing costs in comparison to conventional loans. While your credit score could though determine the percentage you pay as down payment, such could come for as low as 3.5 percents of the purchase amount.
2. U.S Department of Agriculture (USDA) Loan: – the USDA also has a home buyer assistance program with focus on certain rural areas with eligibility unconnected to ownership of a farm. With a fixed loan payment, the USDA guarantees you a home loan even without down payment required. However, such loan as the USDA comes with income limitations which varies from region to region with credit rating determining the extent to which an individual is streamlined or requested for extra documentation.
3. Veteran Affairs (VA) Loan: – this is a home ownership scheme designed to help active-duty military members, veterans and surviving spouses to buy homes. The VA loan also comes with competitive interest rates, require no down payment, not requiring private mortgage insurance, require no minimum credit score for eligibility; as the Veteran Affairs guarantees part of the loan thereby enhancing the possibility of all these special features.
4. Good Neighbor Next Door: – this is another program of the U.S Department of Housing and Urban Development (HUD) specifically designed to provide housing aid to law enforcement officers, fire fighters, emergency medical technicians and pre-kindergarten through 12th-grade teachers. With the use of websites specifically designed for such programs, an individual can locate available properties within their state with discount to the tune of 50 percent on a home listed price in regions known as “revitalization areas” with a commitment to live in the home for at least 36 months.
5. Fannie Mae or Freddie Mac: – these are government sponsored entities that works with local lenders to offer mortgage options for the benefit of low and moderate income families. Through its” Home Path Ready Buyer” program, Fannie Mae provides home ownership education to first time home buyers. In addition this, Fannie Mae and Freddie Mac also back lenders to offer competitive interest rates to first time home owners with the benefit of down payment as low as 3percent of total purchase price.
6. Energy-Efficient Mortgage (EEM): – this is a federal government supported loan scheme, which they insure through the FHA or VA programs; and which is designed to help to provide improvement to your home and make them environmentally suitable. The major benefit of this scheme is that it aids in the creation of an energy-efficient home without the necessity for a larger down payment; making some improvements like installation of double-paned windows, new insulation or a modern heating and cooling system a possibility.
7. FHA Section 203 (k): – this is a rehabilitation program, backed by the FHA and which takes into consideration the value of residence after improvements have been made. This will allow you borrow the funds required to execute the required housing project which shall subsequently be included in your main mortgage. It also comes with a down payment as low as 3 percent.
8. Native American Direct Loan: – through the VA which serves the role of the major lender, Native American Veteran Direct Loan program has since 1992 offered Native American veterans and their spouses home ownership opportunities on federal trust lands. The first-time home buyer loan offers a variety of incentives which includes a 30years fixed-rate mortgage, low closing cost. If eligible, this scheme does not require a down payment; neither does it require payment for private mortgage insurance (PMI).
9. Local Grants and Programs: – in a complementary role to the effort by the federal government to provide help to first-time home buyers, states and cities also have several relief programs through which efforts by aspiring first-time home owners are pushed towards reality. Before you make the decision to buy a home, its advisable to first of all surf the internet for information as regards the availability of housing grants and programs within your locality. To make the best of informed decision, it is as well advisable for aspiring first-time home owners to contact a real estate agent or local HUD-approved housing counseling agency to get advice on the choice of scheme that will best apply to your situation.