Dear Olivia,
I’m a first-time homebuyer and want to know what programs are available to help me purchase a home.
Sincerely,
Excited to Buy
Buying your first home is such an exciting time. Sure, it’s a huge commitment, but the joys of owning your own home are definitely worth it!
Fortunately, many different programs are available to help you finance your first home, too. Let’s have a look at just a few options!
USDA Loans
The U.S. Department of Agriculture has a Rural Development Guaranteed Housing Loan Program that offers 100 percent financing for the cost of your home. Better still, there is no down payment required!
This program has some requirements, notably that the home has to be in an area with a population of less than 35,000, so Fremont County certainly fits the bill!
Likewise, RD loans are meant for buyers with a demonstrated need. For example, you must be without safe housing and have an adjusted income at or below the local limit. For Fremont County, the RD local income limit is $110,650 for up to a family of four.
FHA Loans
The first-time homebuyer program from the Federal Housing Administration (FHA) allows you to buy a home with as little as 3.5 percent down. This can be a significant benefit if you don’t have money for a more traditional down payment.
However, FHA loans require you to have private mortgage insurance or PMI, which you must pay throughout the life of the loan. Not only that, you have to pay PMI at the rate when you closed on the loan unless you refinance.
VA Loans
The Department of Veterans Affairs offers a great deal for homebuyers. Veterans or active-duty members get 100 percent financing, so there’s no down payment. Better still, there is no PMI requirement!
You can also qualify if you’re a spouse of a military member who died on active duty. Many National Guard members and reservists also qualify for VA loans.
To qualify, you must have a good debt-to-income ratio. You’ll also need a certificate of eligibility, and you must have a high enough credit score to meet the lender’s requirements.
Wyoming Community Development Authority Loans
The Wyoming Community Development Authority (WCDA) offers a first-time homebuyer program that features low fixed interest rates for 30-year terms. You can also use WCDA’s Homestretch Down Payment Assistance program to cover the costs of prepaids, closing costs, and the downpayment on a single-family home on 10 acres or less.
You have to complete a homebuyer education course to qualify. You must also use the home as your primary residence, and you can’t have owned a home in the last three years.
With that, you have a nice selection of first-time homebuyer programs to choose from. If you have questions about any of these programs or other aspects of financing your purchase, please don’t hesitate to contact me and the Wind River Realty team for assistance at 307-856-3999.
~Olivia