Loan Programs Put First Time Buyers Into Homes

As homes across the nation fight for attention in aoffers similar programs to help teachers buy homes in
buyer's market, first time buyers try to figure out thelocal communities. The Extra Credit Teacher Program
best ways to access funds. The variety of mortgageand the School Facility Fee Program offer down
options has grown so much in the past decade thatpayment assistance, second loan forgiveness and
the 30-year conventional loan isn't the standard it oncegrants to apply to the costs of buying a home.
was. While the market cooled with a decrease ofOther innovative programs to help buyers obtain
sales in the first half of 2007, analysts predict a gradualhomes in high priced markets are also available.
increase, as the need for homes never disappears.CalFHA recently introduced a 40-year fixed rate loan.
The biggest challenge for anyone looking at homes onThis will benefit first time buyers with lower interest
the market for the first time may be coming up with arates, lower monthly payments, and better chances of
big enough down payment, or obtaining a good interestgetting more potential owners into homes.
rate. Fortunately, both federal and state governmentsSpecific areas of the country, like New Orleans with
offer programs designed to make homes moreassistance for hurricane victims, are offering targeted
accessible to these first time buyers.loan programs to help people better afford homes. Los
The US Department of Housing and UrbanAngeles County residents can use CalFHA loans for
Development (HUD) offers numerous programs tohomes costing up to $591,272. The limit is even higher
make homes in revitalization and low-income areasfor homes in targeted homes areas. The San Diego
more attractive and accessible. There are programsHousing Commission also offers first time buyers help
for hurricane evacuees, public housing residents andwith down payments and deferred second mortgage
Native American Indians. One of the most popularprograms.
programs at both a state and national level is whatWhile loans for homes programs differ from state to
HUD calls the Good Neighbor Next Door Program. Thisstate, a knowledgeable mortgage lender will be able to
offers homes at a 50% discount to teachers, policepoint you in the right direction. Remember, there are a
officers and other public servants if they commit tolot of people out there who want to help get first time
living in the area for 36 months.buyers into homes of their own. And there are a lot of
The California Housing Finance Agency (CalHFA)programs to support that goal.