Let’s just say that the stars are aligning for first time homebuyers. Market forces are good as we are entering a more balanced market that we have not seen in years. In addition, there is an abundance of programs to help the first time homebuyer get into that first home in 2020.
Let me explain why:
Low Downpayment Programs
There are VERY generous programs out there to help with qualifying the first time homebuyer for a purchase with a low downpayment.
- FHA loan program: A loan insured by the Federal Housing Administration. Good for those with low credit scores and little money saved for a down payment. https://www.hud.gov/buying/loans
- USDA loan program: A loan program 100 percent guaranteed by the U.S. Department of Agriculture for lower-income borrowers in eligible rural areas. https://www.rd.usda.gov/programs-services/single-family-housing-guaranteed-loan-program
- VA loan program: A loan backed by the U.S. Department of Veteran Affairs that allows no down payment for military personnel, veterans and their families. https://benefits.va.gov/homeloans/
- Good Neighbor Next Door buyer aid program: A HUD program that provides housing aid for law enforcement officers, firefighters, emergency medical technicians and teachers. https://www.hud.gov/program_offices/housing/sfh/reo/goodn/particip
- Fannie Mae or Freddie Mac loan program: Conventional loans backed by Fannie Mae or Freddie Mac require 3 percent down. Good for those with strong credit.
- HomePath ReadyBuyer Program: A program that provides 3 percent in closing cost assistance to first-time buyers. Must complete an educational course and buy a foreclosed Fannie Mae property.
- Energy-efficient mortgage program: Backed by FHA or VA loan programs and allows borrowers to combine the cost of energy-efficient upgrades onto a primary loan upfront.
- FHA Section 203(k) loan program: Borrow the funds needed to pay for home improvement projects and roll the costs into one FHA loan with your primary mortgage.
Downpayment Assistance Programs
On top of the low downpayment programs, there are actually programs that will grant the first time homebuyer part of the downpayment!
- Montana Neighborhood Lift – Down payment assistance up to $12,500 for service members. https://www.montanalift.org/
- Montana Board of Housing deferred or Bond Advantage Program can provide up to $10,000 https://housing.mt.gov/Homeownership/Lenders/Down-Payment-Assistance
- HRDC Road to Home offers up to $30,000 . https://thehrdc.org/how-we-help/housing/down-payment-assistance/
- Dream Makers Grants for Veterans – Offers up to $5000 . https://www.penfed.org/learn/mortgage-programs-for-veterans
- There are also local and state programs that can help get you into a new home!
Other Positive Factors for First Time Homebuyers
- Prices in the SW Montana area are leveling off and slowing their rate of increase. See my blogs for up to date information on real estate trends! https://movemetomontana.com/montana-blog-real-estate-trends
- Inventory is good and days it takes to sell a home has risen. We are approaching a balanced market where everything is not weighted towards the seller.
- Mortgage rates themselves are quite reasonable and are actually down from a year ago.
Free Seminar for First Time Homebuyers
This is a lot of information to digest. To help, a mortgage broker, Kari Francisco (NMLS #1123666) from First Security Bank and I will be presenting a Seminar with just about everything you need to know to purchase your home in 2020. The seminar will take place on February 8 from 10 am – 12 Noon at the Windermere office in Downtown Bozeman – 135 East Main street. PLEASE RSVP to liz@windermere .com or on my contact form at https://movemetomontana.com/as space is limited.
Pictured home is in Belgrade – check it out on this link. https://www.windermere.com/listing/MT/Belgrade/1308-Fozzie-Lane-C-58714/100542204