Home Purchase Assistance Programs
- HUD puts homeownership within reach for many people.house image by Byron Moore from Fotolia.com
The Housing and Urban Development (HUD) is an agency in the federal government that helps people purchase homes. HUD also connects home buyers to its national network of reputable advisers for free. When a home buyer applies for a mortgage through one of HUD’s approved lending institutions, HUD basically co-signs on the loan so if the borrower defaults, HUD pays the lender the balance. This puts home ownership within reach for many who wouldn’t be able to qualify for conventional loans. - The downpayment is what frequently makes buying a home impossible.Sold Home For Sale Sign on Burst image by Andy Dean from Fotolia.com
This program is for people who want to purchase or refinance a home. Borrowers can borrow 95.5 percent of the value of the home. Mortgage maximums are determined by what area of the country you are trying to purchase a home in. - Renovating a house can be a great family project.young helper image by Cherry-Merry from Fotolia.com
This home makes it possible to buy a “fixer-upper” by bundling the estimated renovation costs with the purchase price into the mortgage. Fixer-uppers are often at rock bottom prices and if the home buyer is able to put in some work, the result is a better home than he would have otherwise been able to afford. This program can often be combined with programs offered through state and local government agencies. - ARMs can sometimes help homebuyers who need afforable mortgage payments.Hipoteca 2 image by Nuka from Fotolia.com
When interest rates are high, an adjustable rate mortgage (ARM) can make the purchase of a home more affordable. The interest rate starts out low and adjusts once a year. In times of low interest rates, some families might prefer to have the lower initial mortgages payments of an ARM. Through the 251 Program, HUD guarantees ARMs just like it guarantees other mortgages, making HUD-approved lenders more willing to make ARM mortgages. - When mortgage payments are too high, Home Ownership Vouchers might help.hand and keys i image by Mykola Velychko from Fotolia.com
This program is for first-time home buyers who need help meeting the monthly mortgage payments or other home ownership expenses. This program is administered through local Public Housing Agency (PHA) offices. Individual PHA offices can impose limits on the program. A list of participating PHA offices is available on the HUD website. There are often waiting lists for this program. - Good neighbors make good neighborhoods.group of kids playing image by dip from Fotolia.com
This program is open to law enforcement officers, fire fighters, emergency medical technicians and pre-kindergarten through 12th grade teachers. The program allows these home buyers to buy a home at a 50 percent discount from the list price. Home buyers choose from homes listed for sale exclusively through the GNND. This doesn’t mean, however, that these are undesirable homes. If not purchased within five days of being put on the GNND list, homes return to the open market. The buyer must agree to live in the house as his sole residence for 36 months. HUD requires that the purchaser sign a “silent second mortgage” for the amount discounted, however this is only for the purpose of insuring the 36-month residency requirement. After the requirement is met, the second mortgage is withdrawn.
