5 Financial Resources for Families Looking for a New Home
| Photographs By JumlongCh
Higher home prices and the decreasing number of homes available for sale aren’t the only things keeping most families in city apartments. Most of these families, regardless of their income levels, remain holed up in rentals as they don’t know how to seek for funds to buy a home.
Here are five possible financial sources for families seeking to buy their family home.
State Down-Payment Grant
Where do you live and what is your average annual income? Those are the only questions most state, county or even local governments ask in determining whether you qualify for down-payment assistance.
To make homes affordable for all citizens, state and county governments set up the little-known Down Payment Assistance Scheme. This helps low-income earners raise the down payment required by most mortgage providers.
College Graduation Grant
A bachelor’s degree in any related field can also earn you a significant grant amount that you can use as a down payment for a family home, in Indiana and Ohio, at least.
In these two states, you can qualify for up to 2.5% of your home purchase if you graduated with a bachelor’s degree there within the last two years and have a full-time job.
Mortgages remain by far the most popular financial resources for purchasing a family home. With a stable source of income and the required down payment, you can approach any financial institution offering mortgage services for financing.
Note that the higher your down payment and shorter the repayment period, the more favorable the mortgage-repayment terms will be.
Though they suffered a major setback in the recent housing crisis, low-down-payment loans are still available. For instance, the Federal Housing Authority requires that you put down as little as 3.5% of your home-purchase price.
Good Neighbor Next Door
Is your career centered on community services, meaning you work as an emergency medical technician, firefighter, active law enforcement officer or are a veteran? That too can increase your chances of owning a family home.
Through the Good Neighbor Next Door program, the U.S. Department of Housing and Urban Development can finance up to 50% of the home’s listing price if you seek to buy a house in regions that the institution considers revitalization areas.
There is a catch, though. You must work full-time in the designated occupation and agree to live in the home for at least three years after purchase.
Real estate experts believe the only reason hindering could-be homeowners from owning a home is that they aren’t familiar with the different finance resources available to them.
If you dream of moving your family out of a rental and into a decent home, research the various financial sources available to you according to your profession, income level, and residence.
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