Many people are intimidated by the prospect of buying their first home. For many people, a home is the largest purchase they’ll make in their lifetime. The idea of borrowing so much money makes them nervous. But what they may not realize is that there are many benefits to being a first-time homebuyer. Below, we’ve discussed a few!
What Are the Perks of Being a First Time Homebuyer?
Being a first-time homebuyer is actually a really great thing. Not only do you get to finally pursue your dream of homeownership, but there are also some intriguing financial incentives that are attached to being a first-time buyer. These include down payment assistance and relaxed qualification requirements.
8 Benefits Available to First Time Homebuyers
- You may be eligible for down payment grants. These are grants that can provide eligible borrowers with funds needed for the down payment on a home loan. Grants do not have to be repaid.
- Depending on your situation, you may be able to take out a forgivable loan to put towards your down payment. Forgivable loans are loans that no longer have to be repaid once the borrower has met certain requirements. In the case of buying a home, usually the borrower has to live in the home for a certain amount of years.
- You may be able to take out a non-forgivable loan to use for the down payment. These loans must be paid back, no matter what. But they can be a great option for first-time homebuyers who don’t have money for a down payment because they usually have a low interest rate.
- First time homebuyers can take out IRA funds without penalty. Normally, there is a penalty for early withdrawal. But if you use the funds to purchase your first home, you may be able to avoid this penalty.
- As a first-time buyer, you may be eligible for certain tax benefits. Common tax deductions for first time buyers include home mortgage interest, loan origination fees, mortgage points, and property tax deductions.
- You may be eligible for a state program for first time buyers. Some states offer financial assistance to first-time buyers that can be used for closing costs, home improvements, or a down payment.
- Some new homebuyers may be eligible for HUD funded grants. The HUD itself does not issue grants, but they do grant funds to organizations with IRS tax-exempt status that help first time buyers.
- First-time homebuyers in certain professions may be eligible for assistance. Examples include programs that help educators, first responders, active-duty military, and Veterans.
Find Out What You Qualify For
Our experts are well-versed in first-time buyer programs and can help you determine what you’re eligible for. Call today to get in touch!