6 Ways Homebuyers Can Save

6 Ways Homebuyers Can Save

When the mercury rises, so do home sales. According to Realtor.com, over half of all homes are sold in the summer. Over and over again, house prices take a slight dip in January and then a swift climb again once school is out. That means if you want to wrangle a good deal – and avoid a bidding war – your odds are best if you shift from “just thinking about buying a house” to “homebuyer” earlier in the year.

One of the first steps to purchasing a home is to ensure that your financing is in place. After all, when there’s a long line of prospective buyers who are making offers, the one with the strongest financing is usually the winner. Good news – New America Financial is here to help! Our Personal Loan Consultants will help you find out which programs you’re eligible for so you can save on the upfront costs of homeownership, like a down payment and closing costs. Here are some of our most popular programs for First Time Home Buyers:

1. Pathway to Purchase

The Pathway to Purchase Program is a sizeable $10,000 assistance for first time home buyers looking to purchase in Prince Georges County, Maryland.

Why we like it: Pathway to Purchase provides an impressive $10,000 in down payment and closing costs assistance. This is nearly double what most other programs offer and is available for all Prince Georges County zip codes. The best news about this program, if you live in the home for ten years, it’s completely forgivable. If a decade sounds like too long of a commitment, you can sell early and only pay a portion of the loan back.

2. Maryland Mortgage Program

If you’re a first time home buyer in the “Old Line State,” there’s a good chance you qualify for one of the many Maryland Mortgage Programs.

Why we like it: The Maryland Mortgage Program offers interest-free, deferred loans of $5,000 for first-time home buyers (people that haven’t owned a principal home in at least three years). As an approved lender, New America Financial can provide home loan options with rates that are often lower than commercial lenders are able to provide. Added bonus, a complete course on the home buying process.

3. Rockville REACH

Focused on buyers who plan to purchase in the City of Rockville, Maryland, the Real Estate Effort for Affordable Community Housing program makes housing accessible for first time buyers who can afford a mortgage, but may not be able to come up with a down payment.

Why we like it: The Rockville REACH program provides impressive zero percent interest, 7-year loans that can be applied towards a down payment or closing costs. Loans are available up to $12,000 to applicants who purchase a home or work in Rockville, Maryland.

4. Fannie Mae HomeReady & Freddie Mac Home Possible

The Federal Home Loan Mortgage Corporation (Freddie Mac) and Fannie Mae break down the barriers to homeownership by offering home buyers with low down payment options through their HomeReady and Home Possible programs.

Why we like it: Home buyers who are creditworthy can qualify for a home loan with as little as 3% down, allowing buyers with limited savings get into a home they love quicker. As an approved Freddie Mac Seller and Servicer, New America Financial is one of the few local lenders able to offer these exclusive savings.

5. FHA

FHA (also known as Federal Housing Administration) loans are amongst the most popular loan options for first time home buyers because it helps buyers who may not have the hefty funds for a 20% down payment or those who may not have credit history qualify for a home loan.

Why we like it: With government backing and flexible requirements, it’s easy to see why FHA loans are popular. Borrowers can purchase a home with as little as 3.5% down and a credit score of only 580. This loan options provides over 80% financing on the purchase of your home and helps buyers get into their homes much quicker.

6. VA Loans

Veteran’s Affair loan is our way of saying thank you to those who served. VA loans are available to United States veterans, service members and their spouses.

Why we like it: VA loans offer up to 100% financing and no monthly mortgage insurance. With no down payment required, low closing costs and lower interest rates, Veterans and their families can save on the costs of homeownership over the life of their loan. New America Financial is an approved lender for VA loans.

If you’re looking to purchase a home this spring but you’re not sure that you can afford the down payment and upfront costs of homeownership, talk to a Personal Loan Consultant to find out which programs you may qualify for. You’ll be pleasantly surprised at just how much we can help you save!