Options for first time home buying

To a lot of people buying a home seems impossible. Looking at the prices of homes can be overwhelming, especially if you are a first time home buyer. What many first time home buyers don't know is that there are many methods of buying a home. This includes special financing programs that are only available to first time home buyers. You don't always need to have a large cash down payment to purchase a home. There are several programs available for first time home buyers, here are just a few.

FHA Loans. The most talked about loan program for first time buyers is the FHA Loan. This loan is issued by conventional lenders, such as banks, and insured by the Federal Housing Administration. This program can finance 97% and sometimes even 100% of the purchase of the home. Often these loans also have better than ordinary interest rates, and while they do have certain limitations, they greatly help first time home buyers enjoy the benefits of home ownership.

VA or veterans Administration loan programs are for members or former members of the armed forces. These loan programs work much like the FHA program and in some cases have even better interest terms. There are rules with the VA loans also, but generally a veteran may buy a home with a VA loan as long as it is his primary residence and they don't have another VA loan at the same time.

CalVet loans are backed by the California Department of veterans Affairs. These are similar to the VA loans and are focused more on first time homebuyers who have served in the military.

CalPers is the California Public Employees' Retirement System. This financial program is available to employees of state and local government agencies. They also offer low down payment or no down payment loans for eligible homebuyers.

CalSTRS is the California State Teachers' Retirement System and is similar to the CalPers benefit system with a few extra benefits just for teachers!

USDA Rural Housing Loan Program This program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. (www.rd.usda.gov)

The above programs are only a few of the of the loan programs available to first time home buyers. People who are eligible for one or more of the above programs will find it much easier to buy their first home. The U.S. Government wants you to buy a home and especially wants to reward the people that provide community services. Home ownership is a key part to our individual prosperity and to the prosperity of our country. You should take advantage of everything it has to offer.

Call your Realtor! It doesn't cost anything to find out what programs you qualify for and even people who have owned a home in the past or who have credit issues could qualify for a first time home buyer program. Your Realtor will assist you in finding loan professionals and finding the right home for you. Don't be afraid of your situation. Everyone who owns a home had to start at the beginning. Find a Realtor that you trust, who understands the process, and that will work for you without casting any judgment.

To YOUR success!

Associated Real Estate specializes in all types of Real Estate Sales and Property Management. We work with buyers and sellers to advise and educate them on current market conditions and guide them through the Real Estate process. If you have more questions or need more information, stop by our office at 787 W. Tehachapi Blvd. or call (661) 822-3500.