Interested in buying a home and would like to know where you can get help with Financing. Here are several sources that can help you.
I was reading an article the other day that some potential homeowners (approximately 40 percent) are putting off buying a home because they believed you need at least 20 percent or more for a down payment. Another 25 percent believed you needed between 15-20 percent for a down payment.
In reality, the necessary down payment is lower for many buyers than they realize. The median down payment for first-time home buyers in recent years has been 6 percent. Repeat buyers on average are putting down 14 percent. This becomes even less when utilizing assistance programs and certain loan programs.
Here are some of the programs available to home buyers:
- @HomeIllinois – Administered by the Illinois Housing Development Authority (IHDA). @HomeIllinois offers $5000 down payment and closing cost assistance, lender paid mortgage insurance, a federal tax credit certificate for first time home buyers and the choice of FHA, VA, USFA, or conventional 30 yr fixed rate loans.
Qualifying borrowers include: First-time home buyers, veterans, repeat buyers and those looking to refinance. Borrowers must meet income and purchase limits, credit requirements and contribute $1000 or one percent of the purchase price, whichever is greater. Learn more at IHDA.org
- FHA Loans – Mortgages insured by the Federal Housing Authority (FHA) continue to be a popular option for home buyers because of the minimum down payment of 3.5 percent, low closing costs and the ability for borrowers with less than perfect credit to qualify. In January, FHA maximum mortgages limits increased to $275,665 in most Illinois counties that qualify as low cost areas. Learn more at lyAboutFHAloans.
- Home Ready Mortgage by Fannie Mae – HomeReady offers a 3 percent down payment option for eligible low to moderate income first time and repeat home buyers. Additional income sources will be considered and all co-borrowers (parents for example) don’t have to live in the property. Homebuyers must complete a homeownership education course. Learn more at KnowYourOptions.com/HomeReady
- Home Possible Advantage by Freddie Mac – Home Possible Advantage is Freddie Mac’s version of the 3 percent down payment mortgage product., The program is open to qualifying low-moderate-income first time or repeat buyers or those purchasing in high-cost or underserved areas. First-time buyers must complete homeownership counseling. Learn more at FreddieMac.com/HomePossible
- USDA Single Family Housing Guaranteed Loan Program – Buy a home in certain rural areas you might not need any down payment at all. The US Department of Agriculture (USDA) program assists low and moderate income consumers buy homes in eligible rural areas. The low interest and fixed rate loans can be used to build, rehabilitate, improve or relocate a dwelling in an eligible area. Learn more at ly/USDAsinglefamily
- VA Home Loan Program – VA loans are another financing option that does not require a down payment. The loans are available to qualifying veterans, active military members and eligible surviving spouses. Guaranteed by the U.S. Department of Veterans Affairs. The loans do not require mortgage insurance. Learn more at Benefits.VA.gov/HomeLoans
These are several assistance programs that are available. With interest rates low now is a good time to buy a home. With the economy improving, interest rates are predicted to rise. This will raise your overall cost of ownership. Check out the above sources and when you are ready to buy, give me a call at 309-431-1976.