For renters that are looking to become homeowners, many think that they are years away from being able to put a down payment on the residence of their dreams. This is especially true of younger people, who are often saddled with debt and other financial issues following the completion of their higher education.
However, there are many programs out there, from both loan lenders and local governments, that can make obtaining financial assistance easy. For those that are looking to move out of their apartment and into a real household, knowing the options available to them will be crucial in making this major next step in life.
"There are two roadblocks that most would-be buyers think they face," says Malcolm Hollensteiner, director of retail lending for TD Bank. "The first obstacle is down payment accumulation. The second is purely psychological: the fear that they cannot qualify for a loan […] There are fantastic opportunities that people are not aware of to reduce your need for cash and to obtain a loan approval."
What are the loans that are offered by various financial institutions as well as local and federal governments? They include:
- Conventional loans
- Federal Housing Administration loans
- Portfolio loans
- USDA loans
- Veterans Affairs loans
In a recent poll conducted by the organization NeighborWorks, 70 percent of those surveyed said that they were not aware of the programs that are in place to help people looking to purchase homes for the first time. That is a large amount of people who are not taking advantage of the assistance that is readily available to them.
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