Buying your first home is a really exciting yet huge step forward. Having your own home means, you can plant your favorite plants, paint your walls with the color you love and also have your favorite floor options.
But before you indulge in home decoration and enjoy all the benefits of home ownership, you must go through the process of finding a suitable plan for your home mortgage. First time home buyers have to go through a lot of financial difficulties, from saving money for the down payment, to the closing cost and other moving expenses. But luckily, buying your first home in Wyoming comes with a lot of good options.
Wyoming State has a huge number of guidance programs that are specifically geared to the first time home buyers. Its Real Estate market is wide open for almost everyone from the low credit struggling families to the no credit bachelors.
Here are some of the terms and incentives that you need to know before buying your first home in Wyoming
Eligibility for a First Time Home Buyer
It is important to understand the eligibility criteria for the first time home buyer in Wyoming. Wyoming County Development Authority (WCDA) defines first time home buyers differently than a layman. According to WCDA, a first time home buyer may have owned a home before, as long as the person hasn’t owned a home as a principal residence in the past three years, he is eligible to apply for the first time home buyer program.
These first time home buyers will be required to complete a Home Buyer Education Class through the Wyoming Housing network. Furthermore, in order to be eligible for most of the WCDA programs, you must be eligible for one of the federal programs like VA loans, FH loans or the USDA loans.
FHA Loan Terms
Federal Housing Administration (FHA) has helped millions of United State citizens to achieve their dream of being a homeowner. They also have some programs dedicated to first time home buyers in Wyoming.
FHA loans are usually provided by private lenders and are insured by FH. This insurance by the government agency provides some extra security and protection to lenders which is why FHA loans are available for people with lower income, down payment and credit score compared to traditional loans.
Most of the FHA loans require only 3.5% down payment and some of the home buyers qualify with no down payment at all. The credit score required for eligibility is 620 which is also much lower than traditional loans. Other eligible properties include FHA approved condos, unattached single family homes and multi-unit properties of up to four units.
VA Loan Terms
VA (Veteran Affairs) loans have perhaps the most advantageous terms but only military veterans and their spouses can apply for it. The VA loan offers zero down payment along with no extra private mortgage insurance payment.
USDA Loan Terms
The United State Department of Agriculture (USDA) also provide loans for the first time home buyers. But USDA loans are specified for the homes located in the rural areas only.
Usually there is no or a very small down payment required for the USDA loans. In addition, the interest rates are extremely low so that the people even with the lowest incomes can afford a house.
WCDA Programs for First Time Home Buyers
The WCDA provides low-interest rate mortgages and other special programs to first time home buyers to sustain the homeownership. If you are a first time home buyer and are buying a house in Wyoming, you should look at the WCDA programs for reliable less down payment loans with low and fixed interest rates.
To be qualified for a WCDA loan, a home must sit on maximum 6 acres, be owned by the buyer as the primary residence, and be a single family home. Some of the WCDA programs include Mortgage Credit certificate, Spruce up Purchase, Wyoming Home Again and Home Stretch Down Payment Assistance. Let’s go through them briefly to understand them better.
1. What is Mortgage Credit Certificate?
The Mortgage Credit Certificate Tax Credit Program allows qualified borrowers a credit towards the federal tax liability of buying a home. The credit can be taken out over the complete duration of the loan and is calculated based on the total mortgage interest paid over the duration. This credit can be used over the entire term of the loan period.
A financial advisor can make you better understand the terms and conditions for this certificate so it is better that you consult a local financial advisor before signing up for it.
Also, keep in mind though that this Mortgage Credit Certificate (MCC) cannot be used at the same time as the First Time Home Buyer loan. So make sure to evaluate these programs separately and choose the one that will save you the most money.
2. What is Spruce up Purchase Wyoming Program?
A spruce up purchase and rehabilitation Wyoming program lets you both purchase and renovate a property. It has two distinct Spruce up Purchase Wyoming I and II programs. In order to be qualified for the first one, a buyer need to qualify for both first time home buyer requirements as well as the income and purchase limit for this program.
Typically, a home that is purchased under this loan must be in need of at least $15000 worth of repairs. The loan can be used for heating, electrical, roofing, plumbing and non-structural repairs.
3. What is Home Stretch Down Payment Assistance Loan Program?
If the down payment for your dream house isn’t in your budget, the home stretch down payment assistance loan allows you to borrow up to $10,000 to help you with the down payment. To qualify for this loan program, your loan to income ratio must be below 41 percent. You may qualify for zero percent on this mortgage as long as you are able to pay $1500 to the process upfront.
4. What is Wyoming Home Again Program?
The Wyoming Home Again program gives an even more advantageous interest rate than the first time home buyer program. Only the Real Estate Owned (REO) properties are eligible for this loan and it comes with a fixed 30-year interest rate on all properties.
The Real Estate Agents at Affiliated Mortgage try their best to get you the best mortgage that fits your individual situation and will even help you to get pre-approved.
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