Getting a good mortgage is an important part of the home buying process, especially if you are a first time buyer. In most cases, they benefit from borrower friendly loan features such as easier approval, and down payment assistance. They are designed to help people become homeowners, usually in specific geographic areas, to qualified buyers. Benefits of these loans include:
• Down payment: sometimes you may not have to make a down payment or a very small one.
• Interest cost: organizations subsidize interest charges which can result in a lower monthly payment
• Grants: “free money” that can be put towards closing costs, down payment, and improvements to the home after purchase
• Loan forgiveness: cancellation of the mortgage debt over a long period of time to encourage buyers to stay in the home long term
• Help with fees: as well as limits on home much lenders are allowed to charge for closing a loan
• Deferred payments: loans that don’t need to be repaid (and don’t charge interest) until you pay off the house