A search for a home loan often leads you to a web of myriad offers and advertisements that target first time home buyers. While you are excited looking at so many tempting options, you always have doubts about the authenticity of these offers, are they for real?
Truth is that lots of these advertisements are created by lenders to grab your attention and take it from there but some of these offers are genuine assistance programs for those aspiring home buyers who would otherwise find it hard to qualify for the home loans considering their low credit scores.
It is not necessary that if you owned a home before, you could not qualify for the first-time buyers loan programs. Government has drawn some guidelines on how a previous homeowner can qualify as the first-time buyer for the loan programs:
- An individual or their partner, if they have not owned a house since the past 3 years.
- Those single parents who once owned a home with their partners.
- Those people who previously owned a home without any fixed foundation like a mobile home.
- Displaced homemakers
There are two types of home buyer programs, loan programs and financial assistance programs. Home buyers should opt for those loan programs offered by commercial vendors that are backed by Federal Housing Administration (FHA).Lots of these loan programs are very attractive to those first time owners who have a low credit score and small cash reserve. Financial assistance programs are mostly offered by the state and the local government bodies.
So whether you have previously owned a home or not, you must do some research, find a loan program that suits your budget after carefully evaluating different options.
