First time home buyers need to get pre-approved before they start looking for a home to buy. More often than not they submit an online pre-approval application to a lender and they end up getting pre-qualified which is not the same as getting pre-approved.
Both the USDA and FHA loan programs are great zero to low down payment options for first time home buyers. Furthermore, USDA and FHA loans have flexible qualifying guidelines and offer low interest rates for people with less than perfect credit. The USDA is the best program if you are looking to purchase a home in a small town or rural area.
Rising home prices, low inventory of homes on the market, excessive student loan debt, and no funds for down payment because you are paying too much for rent are some of the reasons people give for not buying a home. The question you need to ask yourself is how bad do you want to be a homeowner?
Over 30 years ago since I embarked on my first home buying journey. I had terrible credit but I took action to improve my credit to achieve my dream to own a home. The process wasn’t easy and it took a year to raise my credit score high enough to qualify for the program. Next, I got pre-approved and found a great Realtor to show me and my wife homes in the Chicago area and we finally found the “ONE”.
Down payment assistance programs can assist you with funds for down payment and closing costs