First Time Home Buyers’ Incentives

by Tracy Cochran 08/25/2019

Purchasing your first home can be a thrilling journey, and an incentive can help to lessen the burden. To qualify for this incentive, you don't need a massive pile of cash in the bank for a down payment. You also don't need a perfect credit score. 

As a first time home buyer, there are specific scores to help you secure the fund needed to purchase your first house. If you want to qualify for these incentives, read ahead!

HomeReady Mortgage Program

The HomeReady Mortgage program is best for first time home buyers with a reasonable credit score of 620, with a minimum income and low cash reserves. This program is best for first home buyers, with a down payment of 3 percent. The program ends once your insurance equity reaches 20 percent. 

USDA loan program

If you are considering a home in a rural area, you might qualify for 100 percent financing through the USDA loan program. This program does not require an immediate down payment, and the credit score requirements are a little less stringent compared to a conventional loan.

Energy efficient mortgage program

EEM is another incentive offering program that aims at improving the cost of energy efficiency. However, this will not affect your minimum down payment. Your lender determines your EEM benefit.

Federal housing administration loans

Another option for first time home buyers that have past credit challenges. Also, the down payment for the new home is minimal. This program is backed up by the government and allows you to qualify with a 3.5 percent down payment and a credit score of only 580.

97% LTV Mortgage

If you want to buy your first home, but unable to make at least a 20 percent, this program might be what you need. In a nutshell, this program allows you to make a down payment of only 3 percent. To qualify, you must pursue a fixed rate mortgage, and your home must be used as your primary residence and not as an investment property.

Many programs offer a mouth-watering incentive to first time home buyers. Not all programs would suit your need as a home buyer, and you must do in-depth research and discover a program fits. 

So, if you are a first-time home buyer and you're yet to determine the incentive to go for, now is the appropriate time to start a hunt.

About the Author
Author

Tracy Cochran

After 17 years of real estate experience in New Hampshire, in 2018 I chose CENTURY21 Diamond Realty as the right fit for my new real estate career in South Carolina. After the death of my husband in December 2016, I went back to school again and became re-licensed. In addition to being a REALTOR and Broker in New Hampshire, I worked seven years as a Notary Closing Agent for Appletree Title & Closing and numerous nationwide loan and title companies. This gave me a knowledge and familiarity of loan closing requirements and documents that most real estate agents do not have. As a real estate agent dedicated to giving clients the absolute best representation, I alway attend every home inspection, final walk through and closing. This is a service that sets me apart from many other sales consultants in this area. Prior to my second life as a closing agent and real estate professional, I was a top-level achiever in multi-level marketing, sales and training with a work force producing over $5 million in retail sales annually. I am a Marine wife and mother of a daughter (deceased) and two Marine sons. In 2012 we moved to Sun City to be closer to family. If you are looking for quality, honesty and exceptional service that goes over and beyond your expectations, please call me. You will not be disappointed. As a widow, I have the additional time to spend helping you find the home that is perfect for you or for selling the home you currently have. Although I list and sell property throughout the Bluffton area, I specialize in Sun City listings and sales. You may reach me via text or telephone at 603-365-6635 or by email at [email protected]. I look forward to working with you.