First Time Home Buyer Program

A quick Internet search for “First Time Home Buyer Program” reveals that there are a large number of cities across the United States offering programs for first time home buyers. Many are creating fist time home buyer programs and focusing on;

• increasing home ownership opportunities
• revitalizing deteriorating inner city neighborhoods
• ofering special housing incentives for teachers, nurses and lae enforcement officers to move into targeted areas
• etc.,

And they’re doing so in creative and unconventional ways.  Take Down Payment Assistance Programs (DPA) for example.  DPAs provide qualified, first-time home buyers with zero interest loans to assist with purchasing homes. And some will even throw in cash money to assist in the home buying process.

Some first time home buyer programs even let buyers earn credit for their physical labor by helping others build their homes, or assist in the building of their own. This is called “sweat equity” and is a great way for buyers without a lot for a down payment to earn it. 

However, the program that I like best is the “New Home Own Programs” where first time home buyers enroll in classes to learn how to be responsible, self-empowered home owners.  They learn how to recycle trash, take care of their lawns, make minor repairs, maintain the outside of their homes, maintain the inside of their homes, service their heating and a/c units, and the like.

Some first time home owner programs teach home owners some practical aspects of buying a home, like the following for example:

1. Get clear about what your wants and needs are before starting house hunting. Take a notepad and write down all the features that are most important to you.

• Are you looking for a house in a specific city, neighborhood or school district?
• How many bedrooms and bathrooms do you want or need?
• Do you want off street parking, or a one or two car garage?

 2. Get your finances in order before you begin looking at properties. Review your credit report, and if you need to clean it up to improve your credit score. Check your credit report to make sure that you don’t have any credit problems, but if you do fix them!  Pay any past due amounts in full, but know that many creditors will be willing to negotiate a settlement price to close the debt.

3. Decide what kind of property you are interested in buying. Are you interested in a for sale by owner, foreclosure, or HUD? Whatever it is you can almost assuredly find it on a website by city, state, or price range. Also, you can usually see pictures of homes with as much detail as you need.

4. First time home buyers also need to get pre-approved for a loan. This will give you a better understanding of what price range you should be looking into and approximately how much house you can afford.  No sense in looking at a $300,000.00 home if you can only afford a $200,000.00 home.

5. Consider working with a reputable real estate agent, regardless of the type of property you wish to buy. Real estate agents are very knowledgeable and can give you many helpful tips and information that can benefit you. They are also great negotiators and will help explain the complicated paperwork involved when placing an offer on the house or when closing a deal.

Talk to your friends and neighbors and ask them for any recommendations. You should only work with an agent you feel comfortable with.

There are many great First Time Home Buyer Programs helping buyers with everything from financing to learning how to be empowered and responsible home owners.  When seeking financing ask them if they offer First Time Home Buyer Loans (some lenders do not).  And when working with Realtors ask them if they know of any special housing areas. And no matter what you do be sure to keep in mind the 5 points mentioned above.

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