Many first-time homebuyers are entering the real estate market this summer amidst the COVID-19 pandemic in order to acquire a piece of the American dream: homeownership. What many are realizing is that mortgage interest rates have become more favorable than in years past. As a first-time homebuyer, you may too find yourself competing with other buyers in a sellers’ market – where home prices have increased, and inventory is small. However, if you find your budget is tight, here are the best loan programs to help you buy a home for your family.
Many people find it difficult to save for a down payment to buy their first home. That’s why it’s a big help when they receive a lump sum amount of money from a loved one that they can use to fund a down payment. It’s called a gift fund. Homebuyers taking out a conventional loan are required to follow guidelines if they will use a gift fund for their down payment. Lenders may not approve the mortgage if you could not prove the source of the gift fund.