Many Americans are finding it extremely difficult to accumulate enough money in these difficult economic times to purchase a home. If you’re one of them, you shouldn’t lose hope and give up on your desire to acquire a home or relocate. In reality, there are numerous programs available that might assist you in buying a home, some of which you may have never heard of. So let’s examine 4 little-known programs that can assist you in purchasing a home in Lakewood, CA.
Overview of Programs to Help You Buy a Home
By some estimates there are, nationwide, more than 2,000 homeownership assistance programs available. These consist of different kinds of assistance for aspiring homeowners. The two largest categories of assistance programs are grants (which don’t have to be repaid) and loans aimed primarily at first-time homeowners, each having its own set of qualifying criteria.
You might believe that you are ineligible for a particular program, but industry insiders advise against ruling anything out until you are confident of all your alternatives. Since it’s possible that you will be qualified for one of the federal assistance program even if you can’t take advantage of a local program. Beyond what you are aware of, there are other excellent little-known program available, such as FHA, VA, and USDA loans.
1. FHA 203(k) Loan
The FHA 203(k) rehabilitation loan, which is unlike an ordinary FHA loan, is appropriate for buyers who want to buy a fixer-upper. This loan combines the costs of purchasing the property with those of fixing it up, taking into account the after-repair worth of the residence. You will be forced to appoint an authorised consultant who will function as contractor and project manager if the renovation expenditures are greater than $35,000.
For purchasers who are ready and able to take on a fixer-upper and who want to acquire immediate equity, this kind of deal is fantastic in Lakewood, CA (or anywhere else). You can save a lot of money by purchasing a house that needs work, and you can use some of the loan to pay for those renovations.
3.5% down payment and a credit score of 640 or above are requirements to be eligible. The house must also require renovations of at least $5,000.
The FHA 203(k) rehabilitation loan is a fantastic option for those who enjoy fixing things up. Nevertheless, it’s advisable to speak with a Lakewood, CA agent before making the plunge if you lack knowledge in this field.
2. Good Neighbor Next Door HUD Loan
The Respectful Neighbor Public employees who qualify for a HUD loan can purchase a property for 50% off the asking price. The Department of Housing and Urban Development (HUD) created this initiative to rehabilitate certain regions, make communities safer, and encourage house ownership.
Public servants including police officers, teachers (pre-K through 12th grade), EMTs, and firefighters have access to this programme. If you’re interested, keep in mind that you must agree to make the house your only place of residence for a minimum of 36 months in order to be eligible.
3. Energy Efficient Mortgage Loan
Through the FHA and the VA, the Energy Efficient Mortgage (EEM) is insured. This programme was designed to encourage buyers to purchase an energy-efficient home or to perform energy-efficient renovations to a property they already own. It does not influence the down payment but is applied to the mortgage.
If you’re interested in assistance with buying an energy-efficient home and saving money on utility costs, this program would be a good fit for you. To qualify, you’ll have to have an energy assessment performed on the home, and this will determine the amount of the loan.
4. HomePath Ready Buyer Program
The HomePath Ready Buyer program, run by Fannie Mae, is specifically designed for first-time buyers. The program covers 3% of the closing expenses when a buyer qualifies for a repossessed house owned by Fannie Mae after passing an online educational course. The requirement for a down payment as little as 3% is an added bonus.
First-time buyers who want/need a modest down payment and closing-cost help who are looking to buy a real estate-owned home are a good candidate for this program. You must demonstrate low to moderate income, be a first-time buyer, and successfully complete the buyer-education program in order to be eligible.
Your Team for More Help to Buy a Home
Although these are some great and little-known programs to aid in home purchases, they might not be suitable for you. However, there are a tonne of additional programs that could be useful to you. Our group of knowledgeable agents can assist you in choosing a program and locating a residence that satisfies your needs. So call us at cash home buyer company when you’re prepared to purchase a home in Lakewood, CA.