It’s a fact of life that unless you’re independently wealthy, you’re probably going to have to take out a loan for your home – especially your very first home!
But navigating the loan process doesn’t have to be scary, stressful or even tedious!
Today, I’m going to tell you all the basic things that you should know before you take out a first-time home buyer loan!
Canton, MI Homes for Sale
Let’s start off with a basic definition of what exactly a first-time home buyer loan is.
This type of loan offers financial assistance to qualified borrowers by using a number of different strategies:
- Very low down payments or none at all
- subsidized interest costs
- Deferred payments
- Grants
- Forgiven loans
- And more
Those individuals who have never owned real estate before are generally good candidates for first-time home buyer loans.
You’re also likely to receive this type of loan if you haven’t owned property in more than three years.
While the financial assistance is probably greatly appreciated by first-time home buyers, there are some restrictions that are typically associated with them.
Some of the stipulations that these types of loans may or may not specify, include:
- You can’t buy a property in higher price ranges
- The newly purchased home must be your primary residence
- You’re not allowed to rent the home to a third party
- The home must pass a physical inspection – in other words, the home can’t have any major safety hazards.
Of course, these sorts of stipulations carry with them inherent disadvantages for the home buyer, including:
- You’re limited to looking in a specific price range
- Should you want to sell the home before a certain date, you may not be eligible for certain program benefits.
- You’re limited on the loan types you can choose from
- There’s a possibility you’ll have to pay for recapture taxes in exchange for some of the program benefits you receive.
Of course, if a first-time home buyer loan is the only way you’re going to be able to own real estate, then that’s the way to go.
But if you have some extra wiggle room, a traditional loan may be the better route.
Investing in Canton Real Estate
For more helpful and straightforward advice on navigating the Canton housing market as a first-time home buyer, please contact us at the Bittinger Team.
While you’re at it, make sure to check out these helpful home-buying resources we offer, including:
Until next time,
Noel
As I have read this article, this is really helpful and useful to buyers. We all know that having this different loan strategies is what also the buyers are looking for. Hoping to read more likely this one.