For a first time buyer, the thought of owning a home can be an exciting prospect. You should be even more excited knowing that you can get incentives to own a home as a first time buyer. Incentives such as tax credits and grants can make your first home more affordable. For example, you could earn about $3000 in discounts if you can just prove that you are good at making financial savings. Unfortunately, not everyone can qualify for such incentives. If you are a first time buyer, you might want to know whether you are eligible for incentives depending on the available programs.
Mortgage loan program by the Housing Finance and Development Authority
Most first time homebuyer programs in South Carolina that give low-interest loans, grants and other incentives require a letter of mortgage pre-approval before allowing you to apply. The mortgage loan program offered by the Housing Finance and Development Authority, for instance, can help reduce your tax burden by about $2,000 yearly. To be eligible, you must be financing and living in a primary residence.
HUD's Homeownership Choice Voucher Program
The HUD voucher program enables you to buy your very first Myrtle Beach homes for sale through this program if you earn a low income. This program can help you convert a rent voucher that you may be holding into an income voucher, which you may use to meet the monthly mortgage or for homeownership expenditure. Your eligibility is judged by a public housing agency on the basis of the size of your family and the sum of your yearly gross income. You can qualify if your family's income is not more than 50% of the resident metropolitan area or county's median income. A PHA is legally required to provide 75% of the value of voucher to you if your income is less than 30% of your area's median income. Median income levels vary by location. To be eligible for this housing voucher, you must also be a US citizen. However, you may be considered if you a non-citizen with an eligible immigration status.
Veterans Administration (VA) zero down guaranteed loans
If you are an active duty or retired veteran, you could be eligible for a zero down mortgage that will enable you to buy your first home. Lending institutions are more willing to offer better terms and lower interest rates because of the guarantees offered by the VA guarantees on the loans.
FHA home loans
Federal Housing Administration-approved loans offered through banks and lenders extend the necessary incentive to purchase a house. The FHA offers less stringent conditions compared to other programs, which explain why it is so popular among first time buyers. The minimum down payment for the purchase, for example, is just 3.5%. Conventional loans, in contrast, typically require a 100% down payment. You are eligible for the loan as long as you qualify for any requirements by the lending institution. FHA offers amazing flexibility even if you have limited down payment, credit, and resources. You can qualify even as a non-occupant co-signer or co-borrower. However, you will be eligible for a loan if you have a primary residence that you occupy as the owner.
If you have not owned a home in the past 3 years and want to buy one of the houses for sale in Myrtle Beach now, you are technically a first time buyer. To help first time buyers, many programs offering incentives have emerged in South Carolina. The terms and conditions for eligibility, however, vary from one program to another. Some are more stringent than others are. Thus, you should find out which one you can qualify for more easily. A real estate professional with Coldwell Banker Chicora Advantage can assist you in finding the most suitable program to increase your chances for eligibility.