This home buying tip will give you the tools you need to conduct neighborhood research in advance of buying a home.
The Happiness Factor
A home is only as good as the neighborhood it's in. If you find a home that meets most of your other home-buying requirements but resides in a neighborhood you hate, you'll never be truly happy.
The Resale Factor
The same thing applies to the resale value of your home. A nice home in a less-than-desirable neighborhood becomes a less-than-desirable home. In other words, the value of your home is greatly determined by the area that surrounds it.
What Makes a Good Neighborhood?
Here are some of the ingredients that make up a good neighborhood. You'll have to evaluate each item based on your own home-buying priorities:
* Safe
* Close to work, school and shopping
* Closet to good healthcare
* Clean and attractive
* Conducive to your lifestyle and interests
* Aesthetically pleasing
* Well maintained
How to Research Neighborhoods
The Internet is a great tool for conducting neighborhood research. It will help you determine which areas are worth visiting and which ones aren't. Here are some online resources to get you started:
* In the Real Estate section of Yahoo.com, you'll find a variety of neighborhood research tools. This makes a great starting point. Just enter the name of a town (or a zip code), and you'll get back a series of topics for further exploration.
* You'll also find some neighborhood research tools at Realtor.com, BestPlaces.net, and monstermoving.monster.com.
* Lastly, conduct some general searches on the Internet. You can find interesting resources by adding keywords like schools, crime rate, taxes, best neighborhoods, etc.
Make a Neighborhood Checklist
You probably have a home-buying checklist already. But what about the neighborhood? Is it on your checklist? If not, you should it add it, or even create a separate checklist just for neighborhoods.
Some items to include on your list:
* What's your first impression?
* Does it "feel" like a place you'd like to live?
* How are the homes and yards maintained?
* How are the common areas and streets maintained?
* Do people seem friendly?
* How close is it to school and/or work?
* Is it quiet or noisy?
* Access to major roadways?
* Access to shopping, dining, etc.?
Conclusion
A house is part of the neighborhood that surrounds it, and vice versa. So keep this home buying tip in mind: Research neighborhoods as thoroughly as you would research the home itself.
* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author's note, and also leave the hyperlinks active.
Learn more!
This home buying tip was brought to you by HomeBuyingInstitute.com, the Internet's largest library of home buying advice. Increase your home buying intelligence by visiting: http://www.homebuyinginstitute.com!
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Wednesday, August 29, 2007
Basic Home Buying Tips
This is intended to be a bit of a primer for the first-time home buyer. Buying a home is a huge decision and not an easy one to make the first time. The home purchase process can be fraught with pitfalls that a new buyer may never see coming, so proper planning and prep is essential. Let's try breaking this process up into 3 parts; financial, shopping and moving. Let's also look at each in turn and see if we can't figure out a good set of steps to follow that can guide a new buyer to a successful home purchase.
Financial - Financially speaking this is going to be huge. Unlike anything you have ever done actually. Buying a home is something that will directly involve every last aspect of your financial life and is based entirely on your credit score. If you are unsure what yours is then now is the time to find out. There could be things affecting your score that may keep you from getting a mortgage and those will need to be cleared up immediately. Then you will need a fully pre-approved mortgage so that you can begin the second step.
Shopping - This is the fun step as you now get to go out and shop for homes. Yes, you get to be the finicky buyer!Now, be careful in your shopping, remember you will have a set amount of money to be working with and setting your standards too high may result in disappointment. Be reasonable about what you actually need. And don't bet the whole lot on one home. This really is the fun part of the process so if you find something you like, make an offer!
Moving - It' always best to start getting really for this step a long time beforehand as picking up an entire life and moving it any distance is time consuming and stressful and should be done with the utmost of care and planning. You will be fairly exhausted at this point but you may find that you are simply running on excitement, especially as the possession date grows closer. Pack by room and this will make it easier to set things up in the new home.
This list is pretty basic but it is something that you can use as the basis for a strong and informed home purchase. Make any changes to the process that you feel necessary after all this is your life and future that are on the line. As you go you can refine and change the list to suit your needs, just remember that this is a process with aspects that will not change.
Lee Cameron is a professional REALTOR® serving the Orlando real estate market. Lee has consistently proven his talent and knowledge in the real estate business and is known to his flair the business and the care with which he treats his clients. For more info on homes & properties in Orlando contact Lee today.
Article Source: http://EzineArticles.com/?expert=Lee_Cameron
Financial - Financially speaking this is going to be huge. Unlike anything you have ever done actually. Buying a home is something that will directly involve every last aspect of your financial life and is based entirely on your credit score. If you are unsure what yours is then now is the time to find out. There could be things affecting your score that may keep you from getting a mortgage and those will need to be cleared up immediately. Then you will need a fully pre-approved mortgage so that you can begin the second step.
Shopping - This is the fun step as you now get to go out and shop for homes. Yes, you get to be the finicky buyer!Now, be careful in your shopping, remember you will have a set amount of money to be working with and setting your standards too high may result in disappointment. Be reasonable about what you actually need. And don't bet the whole lot on one home. This really is the fun part of the process so if you find something you like, make an offer!
Moving - It' always best to start getting really for this step a long time beforehand as picking up an entire life and moving it any distance is time consuming and stressful and should be done with the utmost of care and planning. You will be fairly exhausted at this point but you may find that you are simply running on excitement, especially as the possession date grows closer. Pack by room and this will make it easier to set things up in the new home.
This list is pretty basic but it is something that you can use as the basis for a strong and informed home purchase. Make any changes to the process that you feel necessary after all this is your life and future that are on the line. As you go you can refine and change the list to suit your needs, just remember that this is a process with aspects that will not change.
Lee Cameron is a professional REALTOR® serving the Orlando real estate market. Lee has consistently proven his talent and knowledge in the real estate business and is known to his flair the business and the care with which he treats his clients. For more info on homes & properties in Orlando contact Lee today.
Article Source: http://EzineArticles.com/?expert=Lee_Cameron
Home Buying Tip: How to Automate Google for Easier House Hunting
If you're preparing to buy a home (and especially if you're relocating to a new city), this home buying tip will simplify your research and save you time.
Home Buying Requires Research -- Lots of It
It pays to know as much as possible about the real estate market where you plan to buy a home: market trends, new construction, employment news, zoning and taxes ... you should keep up with these developments and more.
But with so many other steps in the home buying process, how do you find time to sit in front of the computer researching these topics? There just aren't enough hours in the day.
Automate the Process
Here's a way to automate the real estate research process. It's called Google Alerts, and it allows you to send Google's robotic web crawlers on research missions of your choosing.
Using Google Alerts, you can enter a key phrase (like "buying a home in Dallas" or "Dallas real estate news") and then be notified by email whenever Google finds a new page with that phrase. Many of the notifications will be the result of press releases and other news distributed online. So it's an easy way to stay informed about real estate developments in your specified city or town.
To get the most benefit, set Google Alerts as far in advance of your expected buying date as possible. You should also include variations of your key phrase for maximum coverage.
Benefits of Using Google Alerts:
* Saves you time and energy.
* Keeps you informed about real estate developments.
* Costs nothing but a few minutes of your time.
Try it today. Just visit Google's website and click on the "more" link. Next, click on the "Alerts" icon and fill in the information they request. Presto ... you've got your own robotic research buddy!
* Copyright 2006, Brandon Cornett. You may republish this article (unaltered) provided you keep the byline and author's note. Please leave hyperlinks intact.
About the Author
Brandon Cornett is the editor of HomeBuyingInstitute.com, one of the Internet's largest libraries of home buying tips and articles. Put this knowledge to use by visiting http://www.HomeBuyingInstitute.com.
Home Buying Requires Research -- Lots of It
It pays to know as much as possible about the real estate market where you plan to buy a home: market trends, new construction, employment news, zoning and taxes ... you should keep up with these developments and more.
But with so many other steps in the home buying process, how do you find time to sit in front of the computer researching these topics? There just aren't enough hours in the day.
Automate the Process
Here's a way to automate the real estate research process. It's called Google Alerts, and it allows you to send Google's robotic web crawlers on research missions of your choosing.
Using Google Alerts, you can enter a key phrase (like "buying a home in Dallas" or "Dallas real estate news") and then be notified by email whenever Google finds a new page with that phrase. Many of the notifications will be the result of press releases and other news distributed online. So it's an easy way to stay informed about real estate developments in your specified city or town.
To get the most benefit, set Google Alerts as far in advance of your expected buying date as possible. You should also include variations of your key phrase for maximum coverage.
Benefits of Using Google Alerts:
* Saves you time and energy.
* Keeps you informed about real estate developments.
* Costs nothing but a few minutes of your time.
Try it today. Just visit Google's website and click on the "more" link. Next, click on the "Alerts" icon and fill in the information they request. Presto ... you've got your own robotic research buddy!
* Copyright 2006, Brandon Cornett. You may republish this article (unaltered) provided you keep the byline and author's note. Please leave hyperlinks intact.
About the Author
Brandon Cornett is the editor of HomeBuyingInstitute.com, one of the Internet's largest libraries of home buying tips and articles. Put this knowledge to use by visiting http://www.HomeBuyingInstitute.com.
Low-Income Home Buying Programs Explained
A low-income home buying program is any program that helps low-income buyers qualify for a mortgage loan and purchase a home. In other words, it's a program designed to assist home buyers who might not otherwise qualify for a loan.
Most low-income home buying programs are sponsored or insured by the government in some way, such as the programs listed below.
Freddie Mac and Fannie Mae
Freddie Mac and Fannie Mae are private corporations sponsored by the U.S. government. Both organizations indirectly help low- to middle-income families purchase homes, and in similar ways.
Freddie Mac
Freddie Mac is the Federal Home Loan Mortgage Corporation. This organization was chartered by Congress in 1970. Freddie Mac supports the secondary mortgage market by purchasing residential mortgage loans and reselling them to investors on Wall Street. This increases the availability and affordability of home loans for low- and middle-income Americans.
Learn more at www.FreddieMac.com
Fannie Mae
Fannie Mae is short for Federal National Mortgage Association (FNMA). Congress chartered this organization in 1938. According to their website, Fannie Mae "provides financial products and services that make it possible for low-, moderate-, and middle-income families to buy homes of their own."
Learn more at www.FannieMae.com
Federal Housing Authority
The Federal Housing Authority (FHA) also supports low-income home buying in the U.S. The FHA was created as part of The National Housing Act of 1934. The FHA supports the home financing industry by insuring mortgages. This in turn helps low-income home buyers qualify for mortgage loans they might not otherwise qualify for.
Learn more at www.FHA.gov
Veteran's Administration Home Loans
The Veteran's Administration (VA) helps low-income home buyers (and all home buyers, for that matter) by guaranteeing loans made by mortgage lenders. The VA does not actually make direct loans. The VA home loan program is reserved for military veterans and their spouses. Applicants to the program must obtain a Certificate of Eligibility that they will in turn present to their mortgage lender.
Learn more at www.homeloans.va.gov
Rural Housing Authority
The Rural Housing Authority (RHA) is another government organization that can assist low-income home buyers in certain situations. The RHA is part of the United States Department of Agriculture (USDA). Unlike the organizations mentioned previously, the RHA actually makes direct loans to home buyers, among other things. They also guarantee regular commercial loans for home buyers in rural areas.
Learn more at www.rurdev.usda.gov/rhs
State-Sponsored Programs
In addition to federal programs, there are many low-income home buying programs offered by state governments. An example would be the Michigan State Housing Development Authority, which "makes low interest mortgage loans available through [their] network of experienced lenders." Many other states offer similar programs. There are far too many state programs to list in this article, but you can learn more about them by searching online for home buying programs in your state.
* Copyright 2007, Brandon Cornett. You may republish this article online if you keep the author's byline and active hyperlinks below.
Brandon Cornett is the publisher of Mortgage Refinance Advice, an educational website offering articles and advice on the mortgage refinance process. You can learn more by visiting http://www.mortgage-refinance-advice.com
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Most low-income home buying programs are sponsored or insured by the government in some way, such as the programs listed below.
Freddie Mac and Fannie Mae
Freddie Mac and Fannie Mae are private corporations sponsored by the U.S. government. Both organizations indirectly help low- to middle-income families purchase homes, and in similar ways.
Freddie Mac
Freddie Mac is the Federal Home Loan Mortgage Corporation. This organization was chartered by Congress in 1970. Freddie Mac supports the secondary mortgage market by purchasing residential mortgage loans and reselling them to investors on Wall Street. This increases the availability and affordability of home loans for low- and middle-income Americans.
Learn more at www.FreddieMac.com
Fannie Mae
Fannie Mae is short for Federal National Mortgage Association (FNMA). Congress chartered this organization in 1938. According to their website, Fannie Mae "provides financial products and services that make it possible for low-, moderate-, and middle-income families to buy homes of their own."
Learn more at www.FannieMae.com
Federal Housing Authority
The Federal Housing Authority (FHA) also supports low-income home buying in the U.S. The FHA was created as part of The National Housing Act of 1934. The FHA supports the home financing industry by insuring mortgages. This in turn helps low-income home buyers qualify for mortgage loans they might not otherwise qualify for.
Learn more at www.FHA.gov
Veteran's Administration Home Loans
The Veteran's Administration (VA) helps low-income home buyers (and all home buyers, for that matter) by guaranteeing loans made by mortgage lenders. The VA does not actually make direct loans. The VA home loan program is reserved for military veterans and their spouses. Applicants to the program must obtain a Certificate of Eligibility that they will in turn present to their mortgage lender.
Learn more at www.homeloans.va.gov
Rural Housing Authority
The Rural Housing Authority (RHA) is another government organization that can assist low-income home buyers in certain situations. The RHA is part of the United States Department of Agriculture (USDA). Unlike the organizations mentioned previously, the RHA actually makes direct loans to home buyers, among other things. They also guarantee regular commercial loans for home buyers in rural areas.
Learn more at www.rurdev.usda.gov/rhs
State-Sponsored Programs
In addition to federal programs, there are many low-income home buying programs offered by state governments. An example would be the Michigan State Housing Development Authority, which "makes low interest mortgage loans available through [their] network of experienced lenders." Many other states offer similar programs. There are far too many state programs to list in this article, but you can learn more about them by searching online for home buying programs in your state.
* Copyright 2007, Brandon Cornett. You may republish this article online if you keep the author's byline and active hyperlinks below.
Brandon Cornett is the publisher of Mortgage Refinance Advice, an educational website offering articles and advice on the mortgage refinance process. You can learn more by visiting http://www.mortgage-refinance-advice.com
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Home Buying Process - 5 Most Common Questions Among Home Buyers
Since launching the Home Buying Institute website back in 2005, I've received quite a few home-buying questions by email. As you might imagine, many of these questions came from first-time home buyers who are new to the process of buying a home.
I thought it would be beneficial to home buyers everywhere if I selected five of the most common home-buying questions I receive, and explored them in an article such as this. I've also listed the corresponding areas of HomeBuyingInstitute.com that cover these topics in more detail.
So here we go with five common questions when buying a home:
1. How do I find out my price range?
Determining a price range should be one of your first steps when buying a home. When you know how much you can comfortably afford each month, you'll save time during the house hunting process by only visiting properties within your price range.
To determine your price range, sit down and compare your monthly income to your monthly expenses (savings, credit card payments, car payment, quality of life, etc.). How much is left? Your monthly mortgage should be less than this amount. Now you can use an online mortgage calculator to break each sale price down to a monthly amount, and determine if that amount is inside or outside your comfort zone.
Section of Home Buying Institute: "Self Assessment"
2. Do I need a real estate agent?
Here's the short answer ... yes! If you are buying a first home, you should have a real estate agent. Buying a home is one of the biggest financial transactions you will ever make, so it's always wise to have professional help.
Your agent will help you find homes that match your price range and desired features. He or she will also help you validate the asking process (next item), write up the purchase offer, help you negotiate with the seller, and guide you through the rest of the home buying process.
Section of Home Buying Institute: "Finding an Agent"
3. How do I research the asking price?
The first thing to realize here is that it's called an "asking price" for a reason. The price set by the seller is never set in stone. It's what they are asking for, and you are free to make a counter-offer is you see fit. Your real estate agent will help you validate the asking price by looking at comparable, recent sales in the area. This will tell you if the asking price is reasonable or over-priced, based on current marketing conditions.
Section of Home Buying Institute: "Process Overview" and "What to Avoid"
4. Which type of mortgage loan should I choose?
This question always presents a catch-22 for me. On one hand, I enjoy helping people by answering their home buying questions. On the other hand, I don't dare make a decision like this on behalf of a stranger. It's too important a decision for me to make for somebody else.
With that disclaimer out of the way, here's how you can choose the best type of mortgage loan for your situation. First, do some research on the basic types of home loans -- fixed rate, adjustable rate (ARM), balloon loan, etc. When researching the different mortgage types, pay attention to paragraphs that begin with: "This type of mortgage might be best for you if..." Generally, this type of statement is followed by a series of pros and cons that will explain the type of home buyer who might choose that option.
As a rule of thumb, if you're going to be in the home for quite a while (five years or more), it's probably a good idea to choose a fixed-rate mortgage. On the other hand, if you think you'll only be in the home for two or three years, you might want to choose an adjustable-rate mortgage to save money during your short time of ownership.
Section of Home Buying Institute: "Types of Mortgages"
5. What happens at the real estate closing?
Basically, the real estate closing (also known as a "settlement") is when property ownership transfers from seller to buyer. All remaining fees will be paid as well, and these are known as closing costs. The seller gets their portion of the payment (minus what they still owe on the mortgage), and the deed is transferred to reflect the new owner.
As a home buyer, the best you can do is save more money than you think you'll need at closing, just to be safe. You should also make sure you receive a HUD-1 statement (or "settlement statement") at least one day prior to the closing date. This document gives you an itemized list of the costs you'll be expected to pay at closing. The Real Estate Settlement Procedures Act (RESPA) requires that the closing / escrow agent provide this document at least one day before the real estate closing.
Section of Home Buying Institute: "Closing / Settlement"
* You may republish this article online if you retain the author's byline and the active hyperlinks below. Copyright 2007, Brandon Cornett.
Get More Answers
Brandon Cornett is the publisher of Home Buying Institute, a library of home buying advice and articles. If you have additional questions about buying a home, be sure to visit http://www.homebuyinginstitute.com
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
I thought it would be beneficial to home buyers everywhere if I selected five of the most common home-buying questions I receive, and explored them in an article such as this. I've also listed the corresponding areas of HomeBuyingInstitute.com that cover these topics in more detail.
So here we go with five common questions when buying a home:
1. How do I find out my price range?
Determining a price range should be one of your first steps when buying a home. When you know how much you can comfortably afford each month, you'll save time during the house hunting process by only visiting properties within your price range.
To determine your price range, sit down and compare your monthly income to your monthly expenses (savings, credit card payments, car payment, quality of life, etc.). How much is left? Your monthly mortgage should be less than this amount. Now you can use an online mortgage calculator to break each sale price down to a monthly amount, and determine if that amount is inside or outside your comfort zone.
Section of Home Buying Institute: "Self Assessment"
2. Do I need a real estate agent?
Here's the short answer ... yes! If you are buying a first home, you should have a real estate agent. Buying a home is one of the biggest financial transactions you will ever make, so it's always wise to have professional help.
Your agent will help you find homes that match your price range and desired features. He or she will also help you validate the asking process (next item), write up the purchase offer, help you negotiate with the seller, and guide you through the rest of the home buying process.
Section of Home Buying Institute: "Finding an Agent"
3. How do I research the asking price?
The first thing to realize here is that it's called an "asking price" for a reason. The price set by the seller is never set in stone. It's what they are asking for, and you are free to make a counter-offer is you see fit. Your real estate agent will help you validate the asking price by looking at comparable, recent sales in the area. This will tell you if the asking price is reasonable or over-priced, based on current marketing conditions.
Section of Home Buying Institute: "Process Overview" and "What to Avoid"
4. Which type of mortgage loan should I choose?
This question always presents a catch-22 for me. On one hand, I enjoy helping people by answering their home buying questions. On the other hand, I don't dare make a decision like this on behalf of a stranger. It's too important a decision for me to make for somebody else.
With that disclaimer out of the way, here's how you can choose the best type of mortgage loan for your situation. First, do some research on the basic types of home loans -- fixed rate, adjustable rate (ARM), balloon loan, etc. When researching the different mortgage types, pay attention to paragraphs that begin with: "This type of mortgage might be best for you if..." Generally, this type of statement is followed by a series of pros and cons that will explain the type of home buyer who might choose that option.
As a rule of thumb, if you're going to be in the home for quite a while (five years or more), it's probably a good idea to choose a fixed-rate mortgage. On the other hand, if you think you'll only be in the home for two or three years, you might want to choose an adjustable-rate mortgage to save money during your short time of ownership.
Section of Home Buying Institute: "Types of Mortgages"
5. What happens at the real estate closing?
Basically, the real estate closing (also known as a "settlement") is when property ownership transfers from seller to buyer. All remaining fees will be paid as well, and these are known as closing costs. The seller gets their portion of the payment (minus what they still owe on the mortgage), and the deed is transferred to reflect the new owner.
As a home buyer, the best you can do is save more money than you think you'll need at closing, just to be safe. You should also make sure you receive a HUD-1 statement (or "settlement statement") at least one day prior to the closing date. This document gives you an itemized list of the costs you'll be expected to pay at closing. The Real Estate Settlement Procedures Act (RESPA) requires that the closing / escrow agent provide this document at least one day before the real estate closing.
Section of Home Buying Institute: "Closing / Settlement"
* You may republish this article online if you retain the author's byline and the active hyperlinks below. Copyright 2007, Brandon Cornett.
Get More Answers
Brandon Cornett is the publisher of Home Buying Institute, a library of home buying advice and articles. If you have additional questions about buying a home, be sure to visit http://www.homebuyinginstitute.com
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Low-Income Home Buying Programs Explained
A low-income home buying program is any program that helps low-income buyers qualify for a mortgage loan and purchase a home. In other words, it's a program designed to assist home buyers who might not otherwise qualify for a loan.
Most low-income home buying programs are sponsored or insured by the government in some way, such as the programs listed below.
Freddie Mac and Fannie Mae
Freddie Mac and Fannie Mae are private corporations sponsored by the U.S. government. Both organizations indirectly help low- to middle-income families purchase homes, and in similar ways.
Freddie Mac
Freddie Mac is the Federal Home Loan Mortgage Corporation. This organization was chartered by Congress in 1970. Freddie Mac supports the secondary mortgage market by purchasing residential mortgage loans and reselling them to investors on Wall Street. This increases the availability and affordability of home loans for low- and middle-income Americans.
Learn more at www.FreddieMac.com
Fannie Mae
Fannie Mae is short for Federal National Mortgage Association (FNMA). Congress chartered this organization in 1938. According to their website, Fannie Mae "provides financial products and services that make it possible for low-, moderate-, and middle-income families to buy homes of their own."
Learn more at www.FannieMae.com
Federal Housing Authority
The Federal Housing Authority (FHA) also supports low-income home buying in the U.S. The FHA was created as part of The National Housing Act of 1934. The FHA supports the home financing industry by insuring mortgages. This in turn helps low-income home buyers qualify for mortgage loans they might not otherwise qualify for.
Learn more at www.FHA.gov
Veteran's Administration Home Loans
The Veteran's Administration (VA) helps low-income home buyers (and all home buyers, for that matter) by guaranteeing loans made by mortgage lenders. The VA does not actually make direct loans. The VA home loan program is reserved for military veterans and their spouses. Applicants to the program must obtain a Certificate of Eligibility that they will in turn present to their mortgage lender.
Learn more at www.homeloans.va.gov
Rural Housing Authority
The Rural Housing Authority (RHA) is another government organization that can assist low-income home buyers in certain situations. The RHA is part of the United States Department of Agriculture (USDA). Unlike the organizations mentioned previously, the RHA actually makes direct loans to home buyers, among other things. They also guarantee regular commercial loans for home buyers in rural areas.
Learn more at www.rurdev.usda.gov/rhs
State-Sponsored Programs
In addition to federal programs, there are many low-income home buying programs offered by state governments. An example would be the Michigan State Housing Development Authority, which "makes low interest mortgage loans available through [their] network of experienced lenders." Many other states offer similar programs. There are far too many state programs to list in this article, but you can learn more about them by searching online for home buying programs in your state.
Brandon Cornett is the publisher of Mortgage Refinance Advice, an educational website offering articles and advice on the mortgage refinance process. You can learn more by visiting http://www.mortgage-refinance-advice.com
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Most low-income home buying programs are sponsored or insured by the government in some way, such as the programs listed below.
Freddie Mac and Fannie Mae
Freddie Mac and Fannie Mae are private corporations sponsored by the U.S. government. Both organizations indirectly help low- to middle-income families purchase homes, and in similar ways.
Freddie Mac
Freddie Mac is the Federal Home Loan Mortgage Corporation. This organization was chartered by Congress in 1970. Freddie Mac supports the secondary mortgage market by purchasing residential mortgage loans and reselling them to investors on Wall Street. This increases the availability and affordability of home loans for low- and middle-income Americans.
Learn more at www.FreddieMac.com
Fannie Mae
Fannie Mae is short for Federal National Mortgage Association (FNMA). Congress chartered this organization in 1938. According to their website, Fannie Mae "provides financial products and services that make it possible for low-, moderate-, and middle-income families to buy homes of their own."
Learn more at www.FannieMae.com
Federal Housing Authority
The Federal Housing Authority (FHA) also supports low-income home buying in the U.S. The FHA was created as part of The National Housing Act of 1934. The FHA supports the home financing industry by insuring mortgages. This in turn helps low-income home buyers qualify for mortgage loans they might not otherwise qualify for.
Learn more at www.FHA.gov
Veteran's Administration Home Loans
The Veteran's Administration (VA) helps low-income home buyers (and all home buyers, for that matter) by guaranteeing loans made by mortgage lenders. The VA does not actually make direct loans. The VA home loan program is reserved for military veterans and their spouses. Applicants to the program must obtain a Certificate of Eligibility that they will in turn present to their mortgage lender.
Learn more at www.homeloans.va.gov
Rural Housing Authority
The Rural Housing Authority (RHA) is another government organization that can assist low-income home buyers in certain situations. The RHA is part of the United States Department of Agriculture (USDA). Unlike the organizations mentioned previously, the RHA actually makes direct loans to home buyers, among other things. They also guarantee regular commercial loans for home buyers in rural areas.
Learn more at www.rurdev.usda.gov/rhs
State-Sponsored Programs
In addition to federal programs, there are many low-income home buying programs offered by state governments. An example would be the Michigan State Housing Development Authority, which "makes low interest mortgage loans available through [their] network of experienced lenders." Many other states offer similar programs. There are far too many state programs to list in this article, but you can learn more about them by searching online for home buying programs in your state.
Brandon Cornett is the publisher of Mortgage Refinance Advice, an educational website offering articles and advice on the mortgage refinance process. You can learn more by visiting http://www.mortgage-refinance-advice.com
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
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