<p>does anybody know if there is any type of help or grants available for first time home buyers? or first time home buyers who are college graduates? or anything that could be of help?</p>
<p>i found a really adorable house however i’m pretty sure i can’t afford it, at least not by myself… so i’m just going to keep on saving so i have more money for the next really adorable house that comes along (hopefully it’s as adorable as the one i found already, but we’ll see!)</p>
<p>You won’t find grants. I recommend saving your money and trying again. There is always another adorable house for sale.</p>
<p>Are you in a place where buying a house is a reasonable start in the ownership market? Where I live you would be looking at adorable condos, not houses.</p>
<p>Way back in the day, when dinosuars and a young Opie walked the earth, HUD had a first time buyer program for government forclosed homes.</p>
<p>You bid at action for HUD repossessed homes and if you “won” Hud would set you up with a ballon mortgage (7 year) at the time (Carter admin) with about half the going mortgage interest rate (7%) for almost nothing in closing costs $1500. </p>
<p>I don’t know if such a program still exists, but check with government authorities to see if they have first time housing programs. At the time, for us, getting a home for $1500 bucks and a 7% loan rate, when the market was 14% was a huge bargin. We refied after 7 years and were able to keep a low rate and a low house payment. </p>
<p>Keep looking, maybe there’s still something there.</p>
<p>There are special lending institutions that many first time home buyers use to help them get together the down payment for their first mortgage. These financial institutions are called Parents.</p>
<p>Sometimes builders have special deals to allow for smaller down payments. This can especially be true on ‘starter’ homes (often condos).</p>
<p>Whatever you do, read the fine print of the loan terms, make sure you understand them, understand what it means in monthly payments on a variable when the rate increases, and don’t overestimate what you can afford.</p>
<p>YES!! There are several loan packages available, geared towards first time home buyers. Find a professional FULL-TIME Realtor in the neighborhood you most want to live in. They don’t charge you for their services, and they can introduce you to lenders and mortgage brokers who specialize in the type of loan you are seeking. If you need more help-pm me-I am a licensed Realtor in California.</p>
<p>There are many markets in which this is a great time to buy. Where houses are not selling well including here in SCal, many sellers will make you great deals with creative financing and often no money down.</p>
<p>You need to figure out what you can afford and what the typical terms are where you live. Roughly, banks will loan you 3X income if you have 10% down and buy PMI.</p>
<p>Agree totally with APOL. Right now, there are legitimate 100% financing loans around, or low down-payment loans. So, if you have the income to support a loan, but not a lot of savings, buying a home is still a possibility. As barrons said, many states have programs for first-time homebuyers (usually with income limits).</p>
<p>The best way to find any of these is by talking with a Realtor in your area (like APOL, I am one). One who subscribes to the Code of Ethics (which all Realtors (insert little registered trademark doohicky here; I don’t know how to). A realtor will know which lenders are (a) good at what they do (b) are familiar with special programs that might fit you (c) have competitive interest rates (d) deliver on what they promise (e) have fair and reasonable closing costs.</p>
<p>There should be no cost to you to consult with and eventually work with a realtor, who can represent you as a Buyer’s Agent.</p>
<p>If you need or want to “go in” with someone to buy and share a house, you should protect yourselves with a written contract specifying how the partnership will work and just what will happen if one partner wants or needs to move on (new job elsewhere, new life partner…). You don’t have to re-invent the wheel; it’s been done before.</p>
<p>How very exciting to be looking for your first home.
Be very careful with foreclosures, as the price may seem tempting, but very often you have to bid sight unseen, so there is no idea of the inside condition, nor time to do a title search, so there could be liens. Foreclosures are for the pros.</p>
<p>Another simple thought. What ever amount they say “you can afford” to pay, cut it in half. The reason so many are losing their homes are they over extended themselves. Don’t count on raises, don’t count on anything. Don’t over do.</p>
<p>i don’t want a condo, it has to be a stand alone house… i want my own yard and don’t want to risk being too noisy for my neighbors who are attached to me or anything like that if i’m outside or playing music in my house… def has to be its own house… and i’m probably too picky, which really is a bad thing considering this is a first home, but if i’m paying that much money for something I have to like it… homes seem to be sooo expensive here in the lehigh valley.</p>
<p>my college had a grant program for alumni buying a house in the area, but unfortunately i am not in that area. </p>
<p>and also, my parents are not a financial institution :)</p>
<p>One of my friends just bought a home with an 80/15/5 loan and that seems to be working pretty well for him. </p>
<p>I’m saving as much as I can so hopefully another adorable house comes up - or maybe nobody will buy this one (I think it’s a bit over-priced) and I’ll have the money for it later I have somewhere between 5-10% now. I posted for a job at work and if I got it I could def. afford this house, so I’m keeping my fingers crossed!</p>
<p>(I’m basing that off the fact that it would bump me up around where my friends salary is, maybe a little higher actually, and this house costs the same as the one he just bought)</p>
<p>Fendergirl, you’re going to be a lender’s dream - if I remember correctly you’re pretty close to the highly coveted credit score range of 800+ :)</p>
<p>I also totally agree don’t buy a condo or a townhouse - maybe they work out for some people but it has always struck me as too compromising to buy something that seems so much like a glorified apartment. </p>
<p>Take your time to find your house - look at lots and lots of them. It helps to look for as long as possible, and at as great a variety as possible, so that you can gain perspective about what you really want. Be very, very careful not to fall in love with any one house too soon. </p>
<p>Last, evaluate them carefully through a very long range lens - for example, if your career trajectory includes transfering to another city at some point, considering buying something that you may want to hold, and rent, keep as investment property…</p>
<p>coureur, my H and I are one of those “special lending institutions”. Our oldest D and her boyfriend move into their first house next week. It’s a beautiful 2100 sq. ft. end unit townhouse and they are ecstatic.</p>
<p>lts, I think most people would prefer a single family detached dwelling, but in many markets it isn’t feasible for first time buyers. Getting into the market with either a condo or townhouse is almost always a better idea than waiting to be able to afford something larger, at least in our city.</p>
<p>I’m puzzled by the condo or townhouse references. In our city they are almost always overpriced and I have noticed they do not seem to appreciate the way houses do. In our area houses have appreciated over 50% in the past 10 years, while the condos behind us have stayed the same. Guess that means the condos are now affordable. ;)</p>
<p>Plus you have condo fees for maintenance or whatever.</p>
<p>A lady I work with bought a townhouse/condo thing two days ago for 198k. I can find something for 200k that I like a lot more than the townhouse/condo thing - which I don’t like at all. They seem to be very overpriced here and it’s not something I’d want to live in anyway.</p>
<p>and late, yeah… my credit score is pretty good so I don’t think that will be a problem at all. It’s just the whole paying the monthly mortgage thing after they say I can have it :)</p>
<p>I’ve been looking for awhile, and i just accidently saw this house the other day when I wasn’t even looking and I haven’t been able to get it off my mind, but I keep telling myself it’s way overpriced and to get it off my head, but It’s so adorable. My main concerns with it are that it may be too small. It seems like the perfect house for me now, but who knows in ten years. The whole house is in perfect condition. It has beautiful hardwood floors and very nice paint colors on the walls although i may want to change some. It’s a ranch with two bedrooms, this wonderful huge living room with big, vaulted cielings that look amazing and a beautiful fireplace, a very nice kitchen and dining room, a finished basement with what could be another bedroom and another like family room (or two random rooms, whatever), and this wonderfully amazing patio on the back. the whole thing is stone, and it just looks so gorgeous… and it has a hot tub built in, which is something I think is great. I don’t want a house with a swimming pool, but a hot tub would be two thumbs up :)</p>
<p>I keep telling myself to stop thinking about it and just concentrate on saving more money, but it keeps popping back into my head, haha. I keep hoping I get the job that I posted for at work, which really would expediate the me buying a house process.</p>
<p>You are wise to think about the long term, but realize that most people who think they will stay in a house “forever” end up moving for one reason or another within 7 years. So don’t let thoughts of the long term paralyze you.</p>
<p>Opie is right to consider not just what a lender is willing to lend, but also what is comfortable for you, and not to assume wildly increasing salary on your part. But “whatever the lender says, cut it in half”?!? I don’t think so. At least not for most people. Most people couldn’t buy any house at all if they did that.</p>
<p>An 80/15/5 or 80/10/10 loan can work very well. It relates to your thoughts about saving more money and waiting. The timing decision is one you should think of carefully. However, it is possible to be too careful. For instance, if prices are going up in your area, the way mommusic describes, you can find your savings never catching up with price appreciation. That’s where something like a 80/10/10 comes in - you put down 10% for a loan you qualify for and buy the house. You continue saving, and when you’ve saved the additional 10% you pay off that loan - reducing your monthly payments substantially. If prices have gone up, you don’t care - you already own the house and are even that much more ahead.</p>
<p>Re mommusic’s area when houses have gone up in price, but condos have not: that is very specific to the area. Around here, condos have gone up dramatically. Many people believe that will happen in most of the nation, especially as baby boomers decide they want the convenience of condo living. I know condos don’t interest the OP) but for others reading this thread. The condo fee can be a discouraging factor - but remember that this fee covers items you will have to pay for yourself in a single family home (lawn care, snow shoveling, exterior maintenance, reserves for roof replacement, insurance, etc.).</p>
<p>mommusic, the real estate market varies city to city. While condos may not be attractive in your city, the market is booming here. Perhaps real estate prices are much lower where you live? The townhouse my D just bought was purchased three years ago by the present owners for $170,000, and sold to my D for $305,000. That’s a pretty good return in three years. Her condo fees are $63/month which is very low, but there’s also the advantage of no property taxes, which are high here. There are definitely pros and cons each way but if you are in the position of having limited funds, as first time buyers usually are, your options here are limited.</p>
<p>Our neighbor’s house (much higher assessment, mind you) sold four years ago, and again, just last month. They sold for three and a half times what they paid initially, and this is a house in the 7 figures. The market here is pretty crazy, as you can see, and it shows no sign of slowing down anytime soon, which makes it very difficult, if not impossible, for many young couples to buy their first home without help. </p>
<p>fendergirl, it’s exciting when you find the perfect house! Just keep in mind that there will likely be another one you like just as much, if you aren’t able to get this one. I still remember when my H and I bought our first house and how thrilled we were. The advice to find an experienced realtor to assist you is very good. We were fortunate that we have a friend who is a realtor and we knew that he would provide excellent, honest advice to our D, and he did! One thing I’ll add that every first time buyer should factor into their decision is to be sure to consider the cost not only of your monthly mortgage, but also taxes, insurance, utilities, and of course, the additional purchases necessary when you own a home, for things such as gardening and maintenance, snow removal, etc. Also, be sure you have a building inspection done. Best of luck to you, fendergirl, I’ll keep my fingers crossed for you regarding your job!</p>
<p>Yes, there are special programs for first time buyers. Use Google to find some. Google also to find what is offered through your state.
Before trying to buy, read some books or Internet sites about buying houses. Virtually everything on the contract is negotiable (something H and I didn’t know when we bought our first house, a condo). Also, typically the best times to buy are during times of the year when sellers are desperate because the market usually is slow. The time between Thanksgiving and Jan. 1 is always an extremely slow time. </p>
<p>You also can check through the Internet to find out how much your seller’s paid for the house and whether they owe taxes on it. If they owe taxes, they are desperate to sell. That’s how H and I got a great deal on our present house.</p>
<p>Those are just some of the tips you can learn through researching things. I wish I had known these things 28 years ago when we bought our first home.</p>
I have somewhere between 5-10% now. I posted for a job at work and if I got it I could def. afford this house, so I’m keeping my fingers crossed!</p>