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It depends. On needs. On income. On assets. There are special programs with grants or soft 2nd trusts for down payment. Reduced rates in certain areas . Almost every program has an income cap (meaning if you make 150K, chances are you will catch no breaks). Every single program is driving by location and income. But one thing is clear, there is a cost for the "free money" or low/no down payment. The cost is typically higher rates. Moral of the story: don't use the programs if you don't need them.
Talk to a lender that specializes in home mortgages. Realtors can give you a list of several to interview. Lenders will be able to quickly identify what you are eligible for.
Incentives for 1st time home buyers can be the fact that one doesn't need a 780 credit score; that you don't need 20% in down payment monies; that you're not throwing away money on rent when that same money can be used towards an investment (house); that there are numerous programs available for down payment assistance; that a first time home buyer is any one who has not owned a home in 3 yrs. In my state we offer special home loan packages for teachers, law enforcement, emergency medical services personnel, firemen, nurses, cnas, correctional officers. I think all the above are pretty good incentives!
There are a ton of programs out there. When I was looking to buy my first place I had no idea these things existed but ran into a sign about first time buyer programs and got lucky.
Generally, there are programs to cover closing costs, increased tax breaks and even down payment assistance. I leveraged all 3 and pretty happy about them.
The one thing that is tough is that they generally want you to be there for quite a bit. All of the programs required to be there for at least 6 to 9 years or else you can get hit with some penalties.
Each state has their own programs. Some of the down payment assistance programs my buyers here in SC have used are forgiveable after 5 yrs. I don't feel 5 years of staying in a home is too long a time. Heck, I'm in mine 21 yrs, lol.
Do you mean loan or government programs that favor 1st time buyers, or do you mean "what are the reasons a first time buyer should seriously consider buying?"
oh so the programs aren't just homepath properties?
Some homeowners fall into that false sense of security thinking that just because they got down payment money doesn't mean they can make monthly payments which is why some get foreclosed on not knowing what just happened.
Everything is spelled out to the home buyer by their Realtor, by their lender and at the closing table so I'm not sure how any buyer walks away with a false sense of security.
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