Current FHA loan guidelines allow for the down payment portion of your home loan to come from several different places — a gift, personal savings, tax returns, and down payment assistance programs. List of Programs for All Buyers While you’ll find that many federal grants for homeownership and home buyer programs are geared toward first-time home buyers, there are programs for repeat buyers, as well. Bankrate.com lists nine programs that buyers can research and access for financial assistance in purchasing a home, whether it’s their first or their fifth. 1. FHA LOAN For this loan, the HUD’s FDA, defined above, insures the mortgage, offering mortgage lenders a layer of protection, meaning they won’t experience a loss if you happen to default on the mortgage. An FHA loan typical includes “competitive interest rates, smaller down payments, and lower closing costs than conventional loans,” says Rachel Hartman on Bankrate.com. 2. USDA LOAN Not as well-known as the FHA loan, but still worthmentioning, is the U.S. Department of Agriculture (USDA) loan, which offers a home buyer assistance program. “While the program focuses on homes in certain rural areas, you don’t need to buy or run a farm to be eligible,” says Hartman. “The USDA guarantees the home loan. There may be no down payment required, and the loan payments are fixed.” USDA loans have income limitations, which vary regionally, so research the specific requirements for your area.
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