If you are in the market to purchase a brand new house but you do not have a lot of money to go out and spend on a home builders, then you may need to use some of your free time to look into a few options. First Home Advantage is matched up with a realtor and financing the build. Then move-in your brand new house in about 8-12 months. Help you identify the cost range of various home style and package that fit your budget.
There are also first home builders who offer financing through the whole process of construction. Most banks do not offer this type of loan. Some of the larger banks only do so if you have a good credit rating and can provide documentation that you have been making on time payments for the past couple of years. Most first time buyers will not qualify for this type of financing. Also, there are a few of these larger banks that require a down payment and they will only finance certain types of housing styles.
For those first time home builders that are financing and building from scratch, the financing may come in the form of a Deed-in-Lieu of Trust or an Installer Broker Loan. This type of financing does require that the home builder or installer will move in with the buyer within a specific period of time after closing. Most first home builders will put their new owner up in a hotel for a few days and allow them to move in immediately. The downside here is that you will need to pay the money upfront, which can be a hassle.
Deed-in-Lieu-of trusts is a simple agreement where the parties exchange legal papers describing the responsibilities and liabilities. This is one of the easiest forms of financing for first home builders because it does not require an additional down payment. Also, the interest rate on this loan is one of the lowest in all of real estate. However, there are many risks to this type of financing. It is not unusual for first home builders to have trouble paying this loan back in a 30 year’s time frame.
With an Installer Broker Loan, the new construction party pays the cashier or loan officer who holds the deed to the property for a fee. They then make payments on this property until the time that the buyer moves in. An Installer Broker Loan works very well for first home builders because it allows for plenty of flexibility when it comes to finding a property that you love. These loans also tend to have low interest rates, making this type of new construction loan very attractive. However, there are still some risks involved because there is not yet enough knowledge about how to manage this type of new construction loan.
The first home buyer grants authority to a local government agency to develop a plan to assist the new home owner with finances for their move-in quick plan. This new authority is known as a first home buyer grants program. The local housing authority and local community agency will consult with you and your realtor to find a lender willing to issue you new construction mortgage loans to help finance the construction of your new house. While they will do all the work, they will not be able to get you a first home buyer grant unless you qualify for it through the appropriate application.
This application will ask for some detailed information about your financial situation including why you are seeking financing for new construction. You will also need to provide them with details about your plans for managing the funds you will be raising. You will also be required to provide documentation that supports the reasons why you believe that you will be able to resell the property in the future. The best way to increase your chances for success with these types of applications is by working with seasoned real estate professionals that are experienced with first home builders and buyers grants.
It is important that you work with qualified professionals that understand how the process works. You may be able to accomplish your goals faster if you have access to knowledgeable sources for obtaining first home builders and buyers grants. A qualified real estate professional can help guide you through the entire application process and help you achieve your goals for purchasing new homes without financial difficulty.