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State Bond Programs for First-Time Home Buyers

First Time Homebuyer Loans at Union Home Mortgage

Owning a home is still a cornerstone of the American Dream.

To help make that dream a reality for more people, many states offer special loan and assistance programs specifically for first-time home buyers. 

Most of these first-time buyer programs include government-backed and conventional mortgage loans. In addition, many states also offer grants and/or low-cost loans to limit the out-of-pockets costs associated with purchasing a new home. Funds from these special assistance programs are normally used to cover all or a portion of the required down payment and closing costs.

First-Time Home Buyer Programs: Who Qualifies?

Most state bond programs for first-time buyers have specific restrictions regarding eligibility. While first-time buyer programs were originally created for those who have never owned a home before, in many cases those who have not had an ownership interest in their primary residence for the last three years are also eligible.

Other common exceptions to these eligibility restrictions are veterans of the U.S. military and those who want to purchase a home within a “targeted area.” A targeted area is an economically distressed region selected by the U.S. Department of Housing and Urban Development (HUD) for future revitalization.

Other Common Borrower and Property Requirements

Each state with a first-time home buyer program establishes its own set of criteria for participation. For instance, borrowers may be subject to income limits and purchase price restrictions based upon a number of factors, such as the size of their household, the county where the residence is located and whether or not the property is situated within a recognized target area.

Other common considerations include the overall creditworthiness of the borrower and the size and type of the property in question. For example, the borrower may be evaluated based on his income, work history, accumulated assets and outstanding debts. In many cases, completion of an approved Home Buyer Education program is also required.

Do Your Homework

It is important to remember that while there is some continuity among the different state bond programs for first-time home buyers, the specific qualifications for each program can vary greatly from one state to another.

Therefore, it is important to review the restrictions and requirements for the specific state and county in which you plan to purchase a new home. Talking to a qualified loan professional with experience dealing with first-time buyer programs in your area is also strongly recommended.

Getting Started

Because states are not in the business of lending money directly to home buyers, they typically rely on a network of preferred lenders for this purpose. In fact, working with an approved lender from a state’s preferred lending network is required to participate in most first-time home buyer programs.

Union Home Mortgage is a preferred lending institution for first-time home buyer programs in the follow states:

If you are looking to purchase a primary residence in one of these states, we encourage you to use the links above to find out more about the first-time buyer programs available in your area.

Also, please contact your nearest local office of Union Home to speak to one of our highly trained and experienced loan specialists who can help you understand and evaluate your options.

No single loan or program is right for every individual in every situation. However, taking the time to explore the different options available to you can help you realize your own version of the American Dream that much sooner.

Have Questions? Call UHM Today to Find Out More!