First Time Home Buyer Programs in Portland
Tired of renting? There’s help for buyers…
There are lots of awesome first time home buyer programs out there, but unfortunately many (if not most) lenders don’t offer them. Probably not your credit union, not your big bank, not your friend’s mortgage person.
“Why?” you ask. That’s a good question.
Mainly it’s out of ease and convenience. Because the fewer specialized programs a lender offers, the less studying they have to do, the less paperwork they have to fill out, and the lower their costs. Not exactly a great reason to shortchange their buyer clients.
The wave of people buying their first home is on the rise across the entire country. Often the biggest hurdles are qualifying for a loan and saving up the down payment. No matter your situation, if you’re working with the right people, they should offer you programs and strategies that can be tailored to your needs. Programs that offer buyers real help and value….especially for first time home buyers.
Here’s an intro to some of the First Time Home Buyer Programs that can help you buy a home…
NHF Cash Grant
- This program can gift you the entirety of your down payment, even on a 1 – 2 unit property. It’s true, you do not need a down payment if you qualify!
(NHF isn’t only for first time homebuyers. Anyone buying a primary residence could potentially qualify, but it’s still great, and still used by lots of first timers)
- Offering a below market interest rate to eligible borrowers, which is currently 3.25% 30-year fixed (3.34% APR). Can combine with USDA or Map 80. This program can really lower your payment and increase your buying power.
- You may have heard there is no money in this program. That’s incorrect…there is plenty of money, and the state replenishes the fund as needed. ‘Nuff said.
- Provides up to a 5% of the loan amount in a free cash grant for down payment and closing costs. It’s not an interest free loan or silent second, but a true grant for eligible buyers.
- Can be used with both FHA and USDA loans on 1 – 2 unit homes (duplexes ok)
MCC Tax Credit
- One of the most valuable tax credits in the country! The MCC is for First Time Home Buyers who purchase in the PDX city limits, and meet other criteria.
- It’s a large annual tax credit that can offset more than 10% of your mortgage cost. It never expires as long as you are in the home and the loan. It can even be combined with the NHF program. Very valuable for buyers.
MAP 80 100% Financing
- No money down financing AND with no mortgage insurance.
- Eligibility requirements do apply. This is really a fantastic option…if you happen to like the lowest payment possible with no money down!
- Okay…these aren’t technically first time home buyer programs, but they can allow you to buy that fixer that you were told you wouldn’t qualify for financing on.
- Think about it…you can also use them to build that amazing basement apartment you can rent out on Airbnb, and retire early!
Programs that are lenient on student loan debt
There’s some good options out there to help reduce student debt ratio burden when buying a home. Discover what options are available for you.
Wrapping it all up…
Working with a real estate broker and lender who specializes in first time home buyer programs is just about the most important decision you can make in the home buying process. So remember, know your options and work with the right people. Who said buying your first home and getting a mortgage has to be hard?
Get started on your path to a new home, call today: (503) 680-9390.