First Time Homebuyer Grants and Programs in Austin

Coughing out large sums of money to purchase your first home in addition to shopping for mortgage loan can be daunting. However, there are many grants and programs that you can apply for in Austin, to get the funds that you need to actualize your dreams. In addition, many lenders offer these first time homebuyer grants and programs, and all you need is to apply. Nonetheless, you need to surpass their requirements first, to make the first step in your journey of homeownership. Below are the first time homebuyer grants and programs that you can apply for in Austin. 

FHA Loan 

Federal Housing Administration insures this home loan program that is ideal for first time homebuyers with low credit. This is because the program demands lenient guidelines thus requiring low credit score and down payment, contrary to the conventional mortgages. However, you will need to put up with upfront annual mortgage insurance premiums and high borrowing costs. 

USDA Loan 

United States Department of Agriculture insures this home loan program, to borrowers with low or middle income who want to purchase homes in rural areas. The program requires low or no down payment, depending on your credit score. In addition, it requires a low credit score of 640 and above. However, it restricts borrowers to have a median income of 115% to qualify. 

VA Loan 

Department of Veteran Affairs offers this home loan to active duty military members, veterans and well as their spouses. The home loan program does not require any down payment and rolls the funding fee into a loan. In addition, the program does not require minimum credit score or any private mortgage insurance. However, some lenders tend to put up their minim credit scores that you need to qualify. 

Good Neighbor Next Door 

The good neighbor next door provides home aid to teachers, firefighters, law enforcers and medical technicians that need affordable housing. The grant offers discounted prices of homes, which you can sell after 36 months, and it can be used with the FHA, conventional, or VA home loans. However, the grant limits the number of available homes at a certain time, and requires that you must live in the house for the 36 months. 

FHA Section 203 (k) 

The FHA section 203 (k) is a home loan program that is offered to first time homebuyers who are interested in the purchase of home, but never have enough money for improvements. The program requires a down payment of 3.5%, and allows for the rolling of costs of the renovations into primary mortgage. However, you will need to pay high interest rates when rolling improvement costs into the loan.