Why Being a First-Time Buyer is an Advantage
Many prospective buyers believe they need a 20% down payment or perfect credit to buy a home. The reality is that state and federal programs offer significant advantages to those who haven't owned a primary residence in the past three years.
Common First-Time Buyer Benefits:
- Lower Down PaymentsFHA loans require as little as 3.5% down, while some conventional programs accept just 3%.
- Down Payment Assistance (DPA)Grants and forgivable loans that cover your upfront costs, meaning you bring less cash to closing.
- Tax CreditsMortgage Credit Certificates (MCC) can provide a dollar-for-dollar reduction on your federal tax bill.
Local Programs Matter
National loans like FHA are available everywhere, but the best assistance programs are often local. State housing finance agencies, county governments, and even specific cities offer grants that don't have to be repaid if you live in the home for a certain number of years.
Because these programs are hyper-local, the first step is always identifying exactly where you want to buy.
