Community Home Buyer's Programs
Buying a home is a goal that most people have from a very early age. It's something that we assume we'll do when we have the funds, however for some; it seems like the dream will never become a reality. Do not fear; most people, granted they hold jobs, are able to purchase a home, with little money up front. Nowadays, there are so many options for prospective homeowners to fund their home purchases, it's difficult to decide which the best option for you is going to be.One option that home purchasers have is a community home buyer's program that is funded by Federal National Mortgage Association, a.k.a. Fannie Mae. They are only given through direct lenders. There are certain restrictions to obtaining a loan of this type. You will be required to attend a seminar on home ownership and the home purchasing process, in addition there is an income limit your income cannot exceed one hundred and twenty percent of the area's median income.
The loan allows ninety seven percent financing, the prospective home owner can put down as little as three percent of the cost. Once you agree to the offer, a contract is placed on the property to make it affordable for the borrower for as least ten years. If the property is sold within that "affordable period" the home is not allowed to be sold for more than the maximum resale price, set from city to city.
One of the negative aspects to this program is that if the home value does appreciate within ten years, is that you will be required to give back twenty five percent of the appreciation to your lender. The lender will then use this money to assist in another home buyer's program. For more information about obtaining a loan of this type, visit your local board of realtors.
Contributing National Payday Staff Writer
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