One of the most common questions that a first time buyer asks us at Mortgage Investors Group is how to acquire the money to make a down payment and pay closing costs for their new home.
We understand that these expenses can seem overwhelming. Below you will find tips for first-time home buyer that includes information about special first time buyer grants and loans.
Where to Find Money for Your Down Payment and Closing Costs
Just because you are having trouble coming up with these large expenses all at once does not mean that you cannot afford a home. Lenders and government programs recognize this and want to help. Here are three specific programs for you to consider:
- 100 Percent Financing Loan: The United States Department of Agriculture (USDA) started this program to help encourage rural home ownership. To qualify, you must have a credit score greater than 620 and the property you are considering needs to be in an area designated by the USDA. Its benefits include no down payment or private mortgage insurance and the seller can contribute up to six percent of the purchase price.
- Great Choice Home Loan: You can receive help with closing costs if you qualify for this program. It requires you to take classes offering tips for first-time home buyer that will discuss the loan in greater detail. This is one of two programs offered by the Tennessee Housing Development Agency (THDA). It also offers separate programs for people looking for financial assistance with second mortgages.
Schedule an Appointment to Learn More About Loan Types
The above is just two of several different types of loans that may be available to you. We invite you to schedule a consultation with Mortgage Investors Group to learn more about your various financing options.