First time home buyer programs vary from state to state. Even so, they have certain similarities in how they are run. Depending on where you live, the benefits of this program could include:
- Very affordable down payment (or none at all)
- Attractively low rates of interest
- Reduced fees and charges on various services associated with the loan
- Deferred payments in the event that you run into financial difficulties
On casual examination, these buyer programs are very attractive but you have to be prepared for a few problems. These problems can be quite serious but this too depends on which state you live in. The various problems associated with first time home buyers programs include:
- You generally won’t be able to select the best property in an area. If you take assistance from this program then you will only be able to select from low value properties in a particular area. This is because there is generally a limit on the money made available to you through this program.
- There are sometimes restrictions on when you can sell your home or rent it out. If your circumstances improve and you want to trade the house for something better then you won’t be able to.
- In some cases, you might have to pay the lender part of the increase in value of your home.
- You might not be offered a big range of mortgage options since you are in any case getting your money at a very attractive rate of interest.
The only reason you should take help from first time buyer programs to buy your home is if you are genuinely in need of money and are willing to stay in a home that is not quite the best one in your city. If you meet the income restrictions of the program then this is a very good way to start building your assets right up from scratch.