Other State and Local Housing Programs

There are a variety of state and local government programs available to home buyers. They vary from state to state and are changing all of the time. You should check out the state and county you are considering purchasing your home in to see if they offer a program that you qualify for. Some of the more common programs include:

• Down payment and closing cost assistance. Several states offer assistance to eligible borrowers. Usually this assistance is limited to a percentage of the purchase price (say 3%) and is capped at some value (say $4,000). This amount is made available when you close on the house the time you need it the most.
• Many states will help eligible buyers obtain mortgages for less than conventional mortgage rates. This will save you thousands of dollars over the length of the mortgage.
• Credit counseling is often available to help you arrange your finances in a manner that will make home ownership possible.
• Some states grant lower interest mortgages to groups such as teachers, firefighters, healthcare workers, police officers, as well as active duty and veteran military personnel.
• Job loss programs to help you keep your home in the event you become unemployed.
• Tax programs that help to reduce your income tax liability.

• Most of the assistance offered is subject to conditions such as:
• You must be a first time home buyer or have not owned a home for at least three years.
• The home purchase price is less than some maximum value (this varies from state to state). The limit is high enough for you to purchase adequate housing in the area but limits the borrower to modest homes.
• You income must be less than limits set by the agency offering the assistance.
• You must have a minimum down payment usually in the 2% to 3% range.
• You must be able to qualify for a mortgage through an institutional lender. This requires you to have sufficient income to make the mortgage payments as well having as an adequate credit rating.
• You must plan on occupying the house as your principal residence.
• The home to be purchased cannot be a mobile home.