At any given time, a likely majority of those actively searching for a new home will be first-time homebuyers. First-time buyers make up a huge share of the market, but may also have a number of questions or concerns about a process they’ve never been through before.
At Altius Mortgage and our partners with Mortgage Ogden, we offer several loan programs that are often geared specifically toward first-time homebuyers, including FHA loans and several other specialty programs. What are some distinct benefits of being a first-time buyer (there are several), and what should you be thinking about and considering as you enter the market for the first time?
Benefits of First-Time Homeownership
While being a first-time buyer can involve some questions or even some stress, it’s important to remember that you’re actually afforded several benefits while in this position:
- Specialty mortgage programs: As mentioned, there are a number of programs out there available specifically for first-time buyers. From FHA loans with low down payment requirements to other options like the VA loan program, there are several programs to choose from.
- You may be exempt from paying some taxes: When you buy a home and secure a mortgage, you’re also able to deduct the mortgage interest you pay on your taxes. This is a huge benefit, and can save you a lot of money over the life of your loan.
- Lower down payment requirements: For some loan programs, first-time buyers may have access to lower down payment requirements. This means you can buy a home with a smaller amount of money up front.
Defining First-Time Homebuyers
While the term itself seems relatively straightforward, the US Department of Housing and Urban Development has some specific definitions for first-time homebuyers:
- People who have not owned a primary residence for three years.
- Single parents who has only owned a home with a former spouse while married.
- Displaced homemakers who have only owned homes with a spouse.
- Structural and construction themes: There are also a couple more complex situations where someone can be considered a first-time homebuyer based on prior structural or construction themes — your lender can tell you more if you happen to fit into this box.
Considerations for First-Time Homebuyers
Should you take the steps toward becoming a first-time homebuyer? Here are some things to consider:
- Your finances: This is obviously a huge consideration, and one you should be taking a close look at. Can you afford a home? Do you have the income to cover monthly mortgage payments and other homeownership costs?
- Credit score: In order to qualify for a mortgage, you’ll need a good credit score. Take some time to make sure your credit score is in good shape before you start shopping for homes.
- Job security: Do you have a stable job? If not, it may be best to wait until you’re more secure in your position before buying a home.
- Family and planning: Do you have children? Are you planning on having children in the near future? These are things to think about when it comes to space and home type.
Ready to take the first steps toward becoming a homeowner? Altius Mortgage is here to help. We offer a variety of loan programs, including several that are specifically for first-time buyers. Contact us today for more information.
For more on this, take a look at our other previous blogs on this subject: