When it comes to buying a home for the first time, it can feel overwhelming. You may even feel a little stranded, confused, and not sure where to turn for help. But there is help for first-time homebuyers. Hero Home Programs™ can help those looking to purchase their first home!
There are a lot of challenges to being a first-time homebuyer. The biggest concern can be making a down payment while still paying rent and bills and saving money for costs associated with moving. There is a lack of mainstream information that can help first-time home buyers, and it can feel that no matter where you turn to for help, it’s the same dead end.
According to this report from the National Association of REALTORS® Research Group, first-time homebuyers made up 33% of all homebuyers in the United States in 2020. That’s one-third of the homebuying population! And today, we’re focused 100% on helping you. From down payment assistance to cheaper home mortgage rates and tax deductions, we’re here to help.
Who are the first-time homebuyers?
First-time homebuyers are those that have—you guessed it— never bought a house before. Renting a house doesn’t count. First-time homebuyers are those that have never had their names on any legal titles for ownership of a house in any capacity in regards to how a house is defined by their state and local government.
The U.S. Department of Housing and Urban Development (HUD), as cited here, defines a first-time homebuyer as someone who:
- Has not owned a principal residence for three years
- Is a single parent or displaced homemaker who has only owned a home with a former spouse, but only while married
- Has only owned a permanent residence not permanently affixed to a foundation
- Has only owned a property that was not in compliance with local, state, and model codes of construction
If that sounds like you, you may qualify for assistance through various local, state, and federal government funds. And we can help you find those programs to apply to help you achieve your dream of homeownership.
Types of assistance available to first-time homebuyers
Being a first-time homebuyer may not always feel so advantageous. But in reality, there are more advantages than disadvantages. The biggest problem is knowing where to look for and the types of assistance available to you. We’ve got you covered!
When it comes to looking on your own for help, it can be confusing, to say the least. What do all those acronyms mean? And how do I know if I qualify? This section is dedicated to all sorts of help, and while the list is not exhaustive, it is a good foundation for when you’re going out on your own into the wilderness of home buying assistance.
Down Payment Assistance (DPA)
DPA stands for down payment assistance, which is really helpful to avoid paying for private mortgage insurance, or PMI. Here is a huge benefit of being a first-time homebuyer because many DPA programs and grants aren’t available to other types of homebuyers. And there are different types of DPA fundings. There are grants, which you don’t have to pay back, low-interest and no-interest loans that are separate from your lending institution, and even occupation-specific assistance.
There are a lot of government-backed loans out there, and they can come from places you might not expect. Many grants come from the federal level of government, but there are some at the state level too. There are also loans from your state, county, and city governments that are available.
The Federal Housing Administration (FHA), the US Department of Agriculture (USDA), the Veterans Administration (VA), and the US Department of Housing and Urban Development (HUD) all have money available for those that qualify, and many have specific first-time homebuyer loans.
Buying a house is tax-deductible, which can actually keep more money in your pocket when it comes time to file your taxes. Not to mention, when you are a first-time homebuyer, you may be eligible for tax breaks and credits that aren’t available to other types of homebuyers. And this type of money you save or get returned to you can help pay off things like PMI or other types of bills for a while!
Closing Cost Assistance
Almost the opposite of down payment assistance is closing cost assistance. Closing costs can really put a damper on buying a home. They sometimes feel like a grand hidden fee, adding a potential chunk of change in the thousands at the closing table. But, there are programs designed to help cover those costs, especially if you don’t think you can achieve a clean bargain with the seller on the cost of something in the house. Closing cost assistance can be a great safety net to have.
Training and Education
Who knew that taking a simple class on home buying can save you money? The answer is — not many. When you enroll in a certified course through a company of some sort on home buying, the process, the payments, etc., you make yourself more of a marketable candidate for programs and funding. Not to mention, your lending institution may even offer a better rate or another form of discount because you took the time to learn what you were getting into when it came to buying a home.
The Hero Home Program – What is it and how it can help
So what is a Hero Home Program? It is a program dedicated to helping the military, hometown heroes like police officers, firefighters, and first responders, teachers, and healthcare workers get into the home of their dreams. And if you aren’t in any of those occupations, don’t fret! The program helps renters too!
And how do we help? By providing you with all the types of assistance we listed above! Whether it is helping with a down payment, lowering closing costs, or finding you government-backed loans, we are dedicated to serving you. The best part is that you can still work with your private lending institution, as they work directly with your loan officer.
Key takeaways to get you on your journey
When it comes to buying a home for the first time, it can seem overwhelming. However, it doesn’t have to be. When working with us, we provide a whole world of resources available to help you achieve your dreams. Whether you are a hometown hero or just looking to get away from renting again, we are there for you. And the best thing is that they’re free to apply to. Simply schedule your consultation, and the regional representative from the program will reach out to YOU!
So what are you waiting for? Be sure to apply with your local Hero Home Program agent, and be sure to contact them if you have any questions!
Buying a home is stressful, but with Hero Home Programs™, it can feel as if you have a whole team in your corner. Not to mention, you now know where to go in terms of finding money available to first-time homebuyers, and they can help you with that too!
Don’t wait until it’s a perfect time! Make right now work for you and your dreams!