The best deals when buying a home are often given to first home buyer. That is because there are so many different programs and incentives that are giving to help first time buyers realize their home ownership dreams. You will find that you are in line for a lot of monetary perks when making your home purchase. Listed below are some of the great benefits of buying a house for the first time.
Home Buying Programs
First timer homeowners have an easier time qualifying for government programs than repeat homebuyers. The federal government has many federal programs that offer low interest rates and loan guarantees to first time buyers. State and local government also offer price discounts to first time home purchasers that enter the teaching and nursing professions. That is one of the ways that they attract candidates.
More Loan Options
New home buyers have a number of loan options that they can go to for financing. You can always go to a bank, credit union, or mortgage broker. There are special VA loan programs for people that have served in the military that guarantees a really low interest rate for first time buyers. The FHA has first timer buyer loan programs that only make borrowers put down 3 to 4 percent of the loan’s value. That is well below the twenty percent mark that most banks are requiring. Take a few days to compare the house loans being offered to you until you find one that fits.
Saving Money On Taxes
One of the big benefits of buying a house is the mortgage interest deduction. You can lower your taxable income and the amount of taxes that you pay by writing off all of the money that you pay in interest. You can also deduct your property taxes from state tax returns leaving you with a much lower tax liability. There is even a first time homebuyer tax credit that you can claim.
When doing a home loan comparison, take the time to look at the fees that the lender is charging. First time homebuyer loans often have lower fees since they are offered to people who have never owned a property before and have lower income levels. Most first time buyer programs will keep the loan affordable by capping fees and loan amounts.
Now you know why it is so advantageous for a first time home buyer to buy a piece of real estate.
Kevin Yu says
The FHA program is great for people who sub par credit scores. Their PMI is also going to be lower than a conventional loan.