Buying a home is complicated. It’s so complicated, a lot of new home buyers don’t know there are ways to make the process a lot more affordable. It’s easy to sign whatever is headed your way without questioning it. How are you supposed to understand complex terminology and confusing timelines when you’re new to buying a home? That’s why this list is dedicating to some of the best home buying discounts that a lot of potential homeowners don’t know they can take advantage of! Make the most of your money by looking into these discounts below! Who knows what you might save?
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FHA Loans
One of the most well-known discount programs is FHA loans. This program is ideal for first-time home buyers as well as those with subpar credit history. FHA loans are backed by the Federal Housing Administration (FHA) so that allows mortgage lenders to increase their acceptance standards to include those who wouldn’t usually qualify. With an FHA backed loan, you can put as little as 3.5% down. It’s important to note that while there is a smaller down payment, you can expect to pay higher mortgage insurance premiums going forward.
USDA
Do you live in a rural area? Then you might qualify for a homebuyer assistance program through the U.S. Department of Agriculture. This program isn’t just for those who live on farms! It’s for home buyers in rural areas in specific regions. With the USDA loan program, you can receive 100% financing. Look into income limitations by region to get started. Your rural oasis might be closer than you think!
Energy Efficient Mortgage Program
Are you an eco-warrior? If buying a home that’s energy efficient is something that’s important to you, the Energy Efficient Mortgage Program offers a solution for lowering costs. Through the Energy Efficient Mortgage Program, you can extend your borrowing power by purchasing a home with energy-saving improvements or by upgrading your homes existing eco features. You can add these benefits to a regular mortgage if you qualify for a home loan, and you don’t need a new appraisal.
Veteran Loans
The United States Department of Veteran Affairs helps service members, spouses, and veterans buy homes. VA loans are flexible and often don’t require any down payment or mortgage insurance. If you qualify, a VA loan can be very effective at lowering the initial costs of owning a home. It’s important to remember that, while effective, these loans aren’t known for their fast processing times! If dealing with the VA housing department doesn’t scare you away, review this VA home loan calculator to get started.
Good Neighbor Next Door
Originally known as the Teacher Next Door Program, this loan initiative was expanded to include a variety of professions including law enforcement, EMTs, and firefighters. This program allows for up to 50% discounts on the list price of homes located in particular areas. These homes are located in areas in need of revitalization, and homeowners must commit to staying in the property for at least 36 months. If you qualify, act fast! These homes are only listed for 7 days on the Good Neighbor Next Door website.
Are you in need of extra help affording your home? These programs and discounts above might help make your dream of owning a home a reality! While some of these have strict requirements, the perks include lower down payments, lower interest rates, and bargain neighborhoods! Shop savvy when it comes to the home of your dreams! Don’t be afraid to talk to your mortgage lender about potential discounts and government programs that might apply to you.
If you are interested in even more lifestyle-related articles and information from us here at Bit Rebels then we have a lot to choose from.
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