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castrose302, Real Estate Pro in Houston, TX

How do the 1st time homebuyer programs work (not FHA) What are the pros and cons?

Asked by castrose302, Houston, TX Mon Sep 16, 2013

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I would highly recommend you checking out USDA loans they are typically 0 down loans with low interest rates. You do have to qualify but most of my first time home buyers are going with them these days. Simply ask your lender if they do these loans if they say no ask them who does in your area. Congrats on your new home in advance!
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3 votes Thank Flag Link Mon Sep 16, 2013
There aren't many available ... but those that are have strict requirements with respect to income, location, price and other factors. After all, they're giving you free money, so having to comply with a few stipulations isn't unreasonable. If you Google First-Time Buyer Programs Houston, you should get all the information available. Best of luck.
2 votes Thank Flag Link Mon Sep 16, 2013
Typically, The first-time homebuyer must take a pre-purchase homebuyer education class (minimum of 8 hours) from a HUD certified counseling agency. However, there are several different programs out there. I would suggest researching them on the internet. A great one I have dealt with in the past is the American Dream Downpayment Initiative. With this program, the property being purchased must be within Houston city limits. A pro is you will receive a grant of $10,000 which does not have to be paid back. The maximum home price for a single-family dwelling unit, townhouse or condominium can only be $135,000, so if you had a more expensive home in mind, this probably would also be a con. The homes must pass HUD inspection requirements and the homebuyer must not have owned a residential structure during the three-year period prior to purchase of a home with ADDI assistance. Also, your total annual household income must not exceed eighty percent (80%) of the median income. Again, there are several programs, it just depends on what works best for you. If you need any additional information, feel free to contact me @ 832-207-2157 I'd be delighted to assist you in finding the right program for you!
2 votes Thank Flag Link Mon Sep 16, 2013
Castrose,

There was an article in the Houston Chronicle's real estate section about this very topic on Sunday 09/15/2013. City and State have programs that work with first time buyers (or those that have not owned a home in the last 3-5 years). Many buyers looking to use these programs must meet income qualifications and have a decent credit score of at least 640.

Pros are they typically cover closing cost or even down payment. If the buyer stays in the home for a certain amount of time, they do not have to repay those fees. Cons are the funds which these programs come from can run out without notice leaving you hanging just before a closing. The process to enter the program can take some time.

And these programs may not be any better than just working with a conventional loan and getting closing cost assistance from the sellers for your buyers. You just have to compare cost and short and long term effects on the loan. Good luck.

Mark McNitt
m 832-567-4357
Bernstein Realty, Inc.
1 vote Thank Flag Link Mon Sep 16, 2013
Thank you Mark
Flag Mon Sep 16, 2013
Thank you all for the advice i'm actually a real estate agent but im still quite new to all this just wanted others advice, Thank you
0 votes Thank Flag Link Mon Sep 16, 2013
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