3 Resources for First-Time Home Buyer Assistance
First-time home buyer assistance is available to help potential homeowners purchase their first property. This typically comes in the form of grants and guarantees from government organizations.
#1 Local Grants
Local grants can help cover a sum of money, perhaps as much as the total closing costs on a property, without need for repayment. These grants are typically issued to first-time buyers who are purchasing property in a transitional or revitalized neighborhood. They are issued on the local level and can be researched through a local housing office.
#2 Federal Guarantees
Federal guarantees are options in lieu of private mortgage insurance. If an organization like the FHA or FDA guarantees your loan, you can receive benefits like a low down payment option. With an FHA guarantee, a first-time buyer may purchase a home with as little as 3.5 percent down and low, fixed interest.
#3 Tax Breaks
There are several tax incentives to home ownership. First, limited time offers such as a tax rebate may be available depending on when a home is purchased. Mortgage and homeowner's insurance is also tax deductible. While home ownership is typically more expensive than renting, these deductions can present key savings, and first-time homeowners in particular should capitalize on these benefits.
