First Time Home Buyers

Are you excited about the Real Estate Market? If not, you should be if you are contemplating a home purchase soon. The market is steady with a lot of homes that are “move in ready” and with record low interest rates, I’m sure you can buy a home cheaper than renting. If you’re a first time Home Buyer, there’s even more reason to seriously consider making a move.

Did you know, USDA loans are one of the most active loan products in the Clarksville AR, Russellville AR, Lamar AR and surrounding areas? There are a couple of other terms for this loan. Some may call it an “RD” loan or some may refer to it as a First Time Home Buyer Loan. The great thing is, you do not have to be a first time buyer to apply for this loan. You can go to almost any lender and do a Pre-Qualification to see if you meet the requirements as a buyer. In addition, there is no down payment and your closing costs are financed into your loan. The only out of pocket expense for you would be the cost of the appraisal. It is typically between $450-$550.That is awesome! Most people think they need thousands of dollars for a down payment in order to purchase a home. If you weren’t considering buying before, that may be a great reason to investigate the real estate market.

I’ve recently sold some homes in the Clarksville AR and Russellville AR area where the buyer’s interest rates were at an amazing 2.75% to 3.75%. That is an incredible bonus for any home buyer. With those types of interest rates, you can save $$$ over the years in interest alone. Or maybe you will choose to “buy more house for the money”. Ask your lender to compare interest rates with the same sales price and see the difference in your monthly payment and interest saved over the years. I’m not sure how these rates may change over the next few weeks or months, but I assure you, you will want to get your interest rate locked in while they are at record lows.

In addition to the RD loan, The Arkansas Dept of Finance and Administration, aka ADFA, have some great Homeownership Programs to assist you with covering your closing cost or down payment.This will help with building equity in your home faster as you do not have to finance those cost into your loan. They vary in eligibility for FHA loans, VA Guaranteed Loans, RD loans, and some Conventional Loans. Any mortgage lender should be able to go over the various possibilities. Here are some highlights to the different assistance programs and some of the qualifications given by the ADFA to help make buyers more knowledgeable about these programs:

  • “ADFA Advantage”- Tax Exempt Mortgage Revenue Bond: Key components are a very low mortgage interest rate and You can not have owned a principal residence in the last 3 years, (VA and VA spouses are exempt from the first time home buyer requirement).
  • “ADFA Move-Up”-Rate is set daily, No first time home buyer requirement,the income limit is up to $130,000/3 or more people in the home, and the purchase price of the home can be up to $250,000.
  • Arkansas Dream Down Payment Initiative (ADDI)- Qualified buyer can receive up to 6% of the sales price in assistance. (not to exceed $10,000). Buyer must be a First Time Home Buyer (Can not have owned any property in the last 3 years), does not have a credit score requirement, purchase price limit of  $250,000.
  • Down Payment Assistance (DPA)- Do not have to be a first time buyer, no credit score limit, and loan amount  is $1000-$6000 with a maximum payment of $60.75.
  • First Time Homebuyer Federal Tax Credit (MCC)- Provides a federal tax credit up to $2000 per year and the borrower can claim this tax credit each year as long as the home is the primary residence.

Those are some great programs to help with closing cost and down payment assistance. Of course, I just hit a couple of key highlights. There will be lots of criteria that your lender will go over with your to see if you qualify for any of these loan types or assistance programs. Once the Pre-Qualification is over, the fun part begins! Finding you the perfect dream home.

As your real estate agent, I will help you each step of the way when purchasing a home. It doesn’t have to be scary or stressful.Let’s start by contacting me to discuss your needs!

Teresa Smith

RE/MAX First Realty

Call or text: 479-774-5434 or email me at teresasmithrealty@yahoo.com

 

 

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