Are there still incentives for first time home buyers?

Are There Still Incentives for First Time Homebuyers?

First time homebuyers tend to be younger than people who have bought property before. Younger people typically don’t make as much money as their older counterparts, which makes it more difficult to purchase a new home. Not to mention that many people are postponing purchasing property until they feel that they are more financially secure – something that they learned to do coming out of the recent financial crisis.

Because of this, there are a number of incentives available to encourage first time homebuyers to take the leap. These incentives can help homebuyers to secure favorable loan terms, thereby reducing the financial risk of investing in a house. The following are a few of the incentives available throughout the Maryland, D.C. and Virginia areas to first time homebuyers:

First Time Homebuyer Incentives in Maryland

  • Maryland Mortgage Program – The Maryland Mortgage Program was specifically designed for first time homebuyers as well as homebuyers that haven’t owned a home in the previous three years. It allows you to take out a 30-year, fixed-rate mortgage. The program also provides assistance with down payments and closing costs.
  • Other Mortgage Programs – In addition to the Maryland Mortgage Program, first time homebuyers may also be eligible for a number of other programs – even though they are not specifically targeted at first time homebuyers. These programs include the MMP No Down Payment Assistance Program, the Maryland Homefront Program, the Down Payment Assistance Program, the Partner Match Program and the Maryland HomeCredit Program.

First Time Homebuyer Incentives in D.C.

  • Home Purchase Assistance Program – The Home Purchase Assistance Program allows first time homebuyers to obtain an interest-free loan in addition to assistance with their closing costs. The size of the loan depends on a number of factors, including your income, household size and number of assets you can commit to buying the property. You can receive up to $50,000 in gap financing assistance as well as $4,000 in closing cost assistance. You can also obtain a zero percent loan that is deferred for the first five years and then amortized over 40 years.
  • Other Mortgage Programs – Other loans that you may qualify for as a first time homebuyer (but that are not specifically designed for first time homebuyers) include the Employer Assisted Housing Program, the HFA Preferred with DPAL Program and the Down Payment Assistance Loan. 

First Time Homebuyer Incentives in Virginia

  • Mortgage Credit Certificate – As a first time homebuyer, you’ll be able to utilize the Mortgage Credit Certificate, which is a tax credit that amounts to 20 percent of the annual mortgage interest that you have to pay. You’ll be able to use this credit for the duration of the loan, although income and loan limits do apply.

These are a few of the different incentives for buying a new home that are available to first time homebuyers in the Maryland, D.C. and Virginia areas. For more information about the different mortgage programs that you may qualify for, be sure to contact Alex Echeandia today.

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