Homeownership is the dream of every citizen. However, it can be challenging for many people to save up for a house due to high property rates in the US as compared to their low wages.
But don’t worry! The US Government has several homeowner assistance programs for people with less income and new home buyers to help them buy a house quickly with considerable cost savings.
Different grants and specialized loan programs are available for homebuyers throughout the United States. These government programs offer down payments and assist you in various forms such as zero-interest loans, grants, and deferred payment loans.
If you want to buy a home and are looking for some assistance program to save your cost, this article is for you.
Keep reading, and we will tell you various assistance programs for homebuyers by the US government that will benefit you in the form of down payments, loans, and other services if you qualify for these programs due to your low income or other conditions.
Contents
Four helpful programs to start enrolling in
FHA Loan
Federal Housing Administration Loan (FHA) loan is specially designed for low to moderate-income buyers. It offers a down payment depending on your credit score. However, you should keep in mind that FHA doesn’t lend you money for a mortgage.
Instead, it provides you loans from FHA-approved lenders like banks or other financial loan services. In our opinion, it is an excellent option for a new homebuyer who doesn’t afford large down payments.
If your credit score is more significant than 580, you will get a 3.5% down payment from FHA. However, if your credit score falls between 500 and 79, you will get 10% of the down payment for a house.
The home must be the borrower’s primary residence, and he/she must have a steady income and proof of employment.
Veteran’s Home Loan
If you are a veteran or service officer in the American Military, you should apply for this loan program. This VA program helps veterans buy, build, or improve a home via loan.
Several factors like your services in the forces, commitment, duty status, and character determine your VA home loan eligibility. You check the eligibility requirement from the official site.
The significant edge of these government programs is that this VA loan doesn’t demand down payments and credit card score rates for application.
➡LEARN MORE: How to get pre-approved for a VA home loan?
USDA Loan for Rural Housing
It is a terrific loan option for people living in rural areas. This loan is committed to improving the economy and quality of life in rural areas.
It assists low and moderate-income households and provides them the opportunity to own a decent and safe dwelling in the rural areas as their primary residence. You can check the eligible rural areas for this program here.
All the eligible members can build, renovate and relocate their dwellings in the eligible rural areas with 100% financing under these programs. Nevertheless, you must have income eligibility to qualify for the loan that shouldn’t exceed 115% of median household income.
Indian Home Lawn Guarantee Program
If you are a Native American or American Indian, this loan scheme is best for you. It provides homeownership opportunities to the Native Americans and tribes on the Indian land through mortgage loan programs via private financial institutions.
To qualify for these government programs, you must be Native American, and the home you want to buy would be your primary residence. The length of the loan is 30 years or less, and the amount limit is 150% of Federal Housing Administration lending limits for the specific area.
Bottom line
Buying a home can be difficult for a person with a low or average income. Therefore, the government offers different programs and grants to encourage buyers to buy a house. You can go above and check the fantastic loan schemes by the US government for homeowners to benefit themselves financially.
Writer and content creator interested in Entrepreneurship, Marketing, Jobs and landlord issues. I have a bachelor’s degree in Communication from the Andrés Bello Catholic University, VE, and I also studied at Chatham University, USA. In this blog I write and collect information of interest around agreements, property and mortgage.