Buying your first home when you are young has several unique challenges which can seem stressful. However, with the homes for sale you do not have to give in to those challenges. Thankfully owning a home or condo provides a solution to the three biggest problems. The biggest three problems facing young families when buying their first home are having young and relatively unused credit coupled with the fact that you probably have less money for a down payment and most likely you are inexperienced at balancing all of the responsibilities of homeownership.
Buying your first home when you are young does have several unique challenges which can seem stressful. But, it's important to know that when you are buying your home you do not have to give in to those challenges. Actually, owning a home or condo provides a solution to the three biggest problems.
The biggest three problems facing young families when buying their first home are; having young and relatively unused credit, coupled with the fact that you probably have less money for a down payment, and most likely you are inexperienced at balancing all of the responsibilities of homeownership.
The solution to the first problem of having young and relatively new credit when you are buying your home is to use a FHA mortgage. This is a mortgage which is insured by the government agency Federal Housing Authority and does not penalize you for having new credit. With this mortgage program you pay a small monthly insurance payment which protects the mortgage lender in the event that you are unable to pay your monthly payment. However, you will only be able to get approved once your credit scores are over 620.
The solution to the second problem of having less money for a down payment is solved by using one of the down payment assistance programs available for first-time homebuyers. These programs are great because they will allow you to use the money for your down payment and closing costs. Some of the programs do not even require the money to be paid back. The longer you live in the house the more the lender forgives your loan. For example one down payment assistance program forgives twenty percent of your loan for every year you live in your new home. So after five years you do not owe a penny.
However, when you are buying a home using one of these programs you will definitely be limited to the amount you can spend. This may cause you some aggravation because the average home sales price is usually over the acceptable limits, but with some proper planning and the help of a experienced real estate agent you can overcome this issue.
The third and final solution to the problem of not having experience with managing a huge house is solved by buying a condo or townhouse. See, when you purchase a condo you pay a monthly fee to have general maintenance done by the condo members association. This means you can take it easy when we get the sixteen to twenty four inches of snow over a two day period because your association will hire a contractor to take care of those type of things. There are also many more benefits of belonging to a condo association which are too numerous to mention here.
Hopefully by this point you can see that being a young home buyer does not mean you have to give up on your dream of owning your little slice of the American dream.
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