dcsimg

State and Local Homebuyer Programs and Bad Credit Loans

By Michele Lerner
Mortgage Credit Problems Columnist


State and local home buyer programs vary widely from low interest loans to closing cost and down payment assistance with a range of qualifications. The programs are meant to encourage families and individuals to buy homes and to stabilize neighborhoods through home ownership. While some programs have income limits, some do not. Others are available only to members of certain professions such as government employees, teachers or first responders like policemen and firefighters.

Featured Home Equity Loan Provider
    • No Appraisal
    • No Out of Pocket Costs
    • Quotes from Top Lenders
    • Lower Your Mortgage Payment - Save Here!

Home buyer programs sometimes include a grant that does not to be repaid, while others require a gradual repayment plan or repayment when the home is eventually sold. Taking the time to investigate programs in your area could be valuable regardless of whether you need a bad credit mortgage loan.

Consumers who are looking for home loans with bad credit may assume they do not qualify for a home buyer assistance program, but in some localities even borrowers with poor credit may qualify for down payment or other help. The first step is to see where you stand by completing the form on this page to find out if you qualify for a mortgage for bad credit.

An important component of all government home buyer assistance programs is the requirement that each applicant take a home buyer education class. Requirements vary from state to state, and the classes are usually free. One reason this is so important is that the goal of these programs is to help families buy a home and keep it. If you have had credit problems in the past and need to work with bad credit mortgage lenders, you can probably benefit from a class or two teaching you how to budget and how to afford a home.

If you qualify for down payment or closing cost assistance, this may help you keep some funds in the bank for emergencies. Financial experts say that having an emergency fund is one of the best ways to avoid getting trapped into credit problems and relying too heavily on a credit card.

Some consumers looking for a bad credit home mortgage do not need down payment help, but the wide range of programs available and the free home buyer education could be beneficial to your long-term financial health.

To find your local home buyer program, search by state at the National Council of State Housing Agency's directory. To see if you qualify for the lowest mortgage rates, enter your information on this page.

Sources

http://www.ncsha.org

Compare New Home Loan quotes in minutes

Property Type:
State:
Credit Rating