One of the most common questions I am asked as a loan officer is whether first-time home buyer programs are actually available today. To help answer that question, here are the top 4 things to know about first-time home buyer programs:
1. First-time home buyer programs always have income limits and tend to be for low-income households or low income areas.
2. First-time home buyer programs tend to be down payment assistant LOANS. Interest rates for these loans CAN be quite high.
3. Most first-time home buyer programs are city and county specific. A limited amount of money will have been established in a fund, and these funds RUN OUT OF MONEY FREQUENTLY!
4. The term “First-Time Home Buyer” can mean that you never owned a property, but it can also mean that you have not owned a property in the past three years.
A common misconception is that first-time home buyer programs offer money to home buyers that does not need to be repaid. In reality, most first time home buyer programs offer loans with terms that are not very attractive for the home buyer. Make sure to check the fine print on any first-time home buyer programs being offered to your home buyers.
