
First Time Homebuyer Programs
https://myohiohome.org/firsttimehomebuyer.aspx
Eligibility Criteria
-
Applicants must meet OHFA Income limits.
-
Properties must meet purchase price limits which can vary by county.
-
Applicants must meet debt to income ratios for their loan type.
-
Credit score requirements
-
Conventional, USDA, VA, and FHA 203(k) Loans: 640 or Higher
-
FHA Loans (Non-203(k)): 660 or higher. Credit scores of 650-659 are acceptable for an additional fee.
-
-
Applicants must purchase a qualifying property that is limited to two acres within a municipal corporation and five acres outside a municipal corporation, unless additional acreage is required by local health or safety code. Qualifying properties include the following:
-
Existing homes: single-family dwellings, conforming condominiums, duplexes, and up to four-unit properties.
-
Newly built spec/nearly completed homes: one-unit single-family dwellings.
-
Modular Homes; one-unit single family dwellings
-
-
Additional requirements may apply to specific homeownership products
Please contact us today for more Information.
For more articles and updates, subscribe below.
First Time Home Buyer Programs for 2019 by State

Alabama
http://www.ahfa.com/homebuyers
Programs
Affordable Income Subsidy Grant
http://www.ahfa.com/homebuyers/programs-available/affordable-income-subsidy-grant
Mortgage Credit Certificate
http://www.ahfa.com/homebuyers/programs-available/mccs
Alaska
Programs
Tax-Exempt First-Time Homebuyer Program
https://www.ahfc.us/buy/loan-programs/first-time-loans
Taxable First -Time Homebuyer Program
https://www.ahfc.us/buy/loan-programs/first-time-loans
Arizona
https://housing.az.gov/general-public/home-plus
Home Plus Program
https://housing.az.gov/general-public/home-plus
Arkansas
Programs:
ADAF Move Up
https://homeloans.arkansas.gov/move-up/
ADFA MCC - Mortgage Credit Certificate
https://homeloans.arkansas.gov/mcc/
ADFA Down Payment Assistance (DPA)
https://homeloans.arkansas.gov/dpa/
Arkansas Dream Down Payment Initiative (ADDI)
https://homeloans.arkansas.gov/addi/
California
https://www.calhfa.ca.gov/homebuyer/programs/index.htm
Programs
First Mortgage Programs
CalHFA Conventional Loan Program
https://www.calhfa.ca.gov/homebuyer/programs/conventional.htm
CalPLUS Conventional Loan Program
https://www.calhfa.ca.gov/homebuyer/programs/calplus-conventional.htm
Government Insured Loans
CalHFA FHA Loan Program
https://www.calhfa.ca.gov/homebuyer/programs/fha.htm
CalPLUS FHA Loan Program
https://www.calhfa.ca.gov/homebuyer/programs/calplus.htm
Cal-EEM + Grant Program
https://www.calhfa.ca.gov/homebuyer/programs/eem.htm
CalHFA VA Loan Program
https://www.calhfa.ca.gov/homebuyer/programs/va.htm
Down Payment Assistance Programs
MyHome Assistance Program
https://www.calhfa.ca.gov/homebuyer/programs/myhome.htm
School Teacher and Employee Assistance Program (School Program)
https://www.calhfa.ca.gov/homebuyer/programs/school.htm
Mortgage Credit Certificate Tax Credit Program
Mortgage Credit Certificate Tax Credit Program (MCC)
https://www.calhfa.ca.gov/homebuyer/programs/mcc.htm
Colorado
https://www.chfainfo.com/homeownership
Down Payment Assistance
https://www.chfainfo.com/homeownership/down-payment-assistance
Connecticut
https://www.chfa.org/homebuyers/
HFA Advantage and HFA Preferred
https://www.chfa.org/homebuyers-homeowners/homebuyers/hfa-preferred-mortgage/
Homebuyer Mortgage Program
https://www.chfa.org/homebuyers-homeowners/homebuyers/homebuyer-mortgage-program/
Down Payment Assistance Program (DAP) Loans
https://www.chfa.org/homebuyers-homeowners/homebuyers/downpayment-assistance-program-dap-loan/
Delaware
http://www.destatehousing.com/HomeOwnership/HomeOwnership.php
Home Ownership Programs
Home Ownership Loan Program
http://www.destatehousing.com/HomeOwnership/hb_sfmrb.php
Delaware First-Time Homebuyer Tax Credit
http://www.destatehousing.com/HomeOwnership/hb_fthb.php
Neighborhood Stabilization Program (NSP)
http://www.destatehousing.com/HomeOwnership/dv_nsp.php
Downpayment and Closing Cost Assistance
Preferred Plus
http://www.destatehousing.com/HomeOwnership/hb_sfmrb.php#pp
Home Repair Programs
The Statewide Emergency Repair Program (SERP)
http://www.destatehousing.com/HomeOwnership/homeownermedia/serp_card.pdf
Community Development Block Grants (CDBG)
http://www.destatehousing.com/Landlords/dv_cdbg.php
Foreclosure Prevention Programs
Delaware Emergency Mortgage Assistance Program (DEMAP)
http://www.destatehousing.com/HomeOwnership/hb_demap.php
Manufactured Housing Assistance Program (MHAP)
http://www.destatehousing.com/HomeOwnership/hb_mhap.php
Wilmington Senior Tax Assistance Program
http://www.destatehousing.com/HomeOwnership/hb_wstap.php
Florida
http://www.floridahousing.org/
Mortgage Credit Certificate Program
Florida Homebuyer Loan Program
https://apps.floridahousing.org/StandAlone/FTHBWizard
Georgia
https://www.dca.ga.gov/safe-affordable-housing/homeownership
State Home Mortgage
https://www.dca.ga.gov/safe-affordable-housing/homeownership/state-home-mortgage
Georgia Dream
https://www.dca.ga.gov/safe-affordable-housing/homeownership/georgia-dream
HomeSafe Georgia
https://www.dca.ga.gov/safe-affordable-housing/homeownership/homesafe-georgia
Housing Counselor Resources and Training
https://www.dca.ga.gov/safe-affordable-housing/homeownership/housing-counselor-resources-training
Hawaii
http://dbedt.hawaii.gov/hhfdc/
HHFDC Affordable Resale Program Project
https://www.locationshawaii.com/hhfdc/
Mortgage Credit Certificate
http://dbedt.hawaii.gov/hhfdc/mortgage-credit-certificate/
Buyback and SAE Programs
http://dbedt.hawaii.gov/hhfdc/request-for-information-on-hhfdc-sae-property/
Hula Mae Single Family Loans (Not currently active)
http://dbedt.hawaii.gov/hhfdc/copy_of_homebuyers/
Idaho
https://www.idahohousing.com/homebuyers/
Homebuyer Tax Credit
https://www.idahohousing.com/lenders-realtors/homebuyer-tax-credit/
Down Payment / Closing Cost Assistance
https://www.idahohousing.com/lenders-realtors/down-payment-closing-cost-assistance/
Illinois
IHDAccess Forgivable
https://www.ihda.org/my-home/getting-an-ihda-loan/#collapseOne
IHDAccess Deferred
https://www.ihda.org/my-home/getting-an-ihda-loan/#collapseTwo
IHDAccess Repayable
https://www.ihda.org/my-home/getting-an-ihda-loan/#collapseThree
1stHomeIllinois
https://www.ihda.org/my-home/getting-an-ihda-loan/#collapseFour
Indiana
https://www.in.gov/ihcda/homeownership/
Honor Our Vets (HOV)
https://www.in.gov/ihcda/homeownership/files/2018%20Honor%20Our%20Vets%20Program%20Guide.pdf
Helping To Own (H2O)
https://www.in.gov/ihcda/homeownership/files/2017%20HELPING%20TO%20OWN%20PROGRAM%20GUIDE_SH.pdf
Mortgage Credit Certificate (MCC)
https://www.in.gov/ihcda/homeownership/files/2017%20MCC%20PROGRAM%20GUIDE_SH.pdf
Next Home (NH)
https://www.in.gov/ihcda/homeownership/files/2017%20NEXT%20HOME%20PROGRAM%20GUIDE_SH.pdf
Next Home With Mortgage Credit Certificate (NH/MCC)
Affordable Home (AH)
https://www.in.gov/ihcda/homeownership/files/2017%20AFFORDABLE%20HOME%20PROGRAM%20GUIDE_SH.pdf
My Home (MH)
https://www.in.gov/ihcda/homeownership/files/2017%20MY%20HOME%20PROGRAM%20GUIDE_SH.pdf
My home with Mortgage Credit Certificate (MH/MCC)
Iowa
http://iowahousehunt.com/begin/
Mortgage Programs
http://iowafinanceauthority.gov/Public/Pages/PC77LN25
Down Payment Assistance Programs
http://iowafinanceauthority.gov/Public/Pages/PC78LN25
Mortgage Credit Certificate Program
http://iowafinanceauthority.gov/Public/Pages/PC93LN25
Military Home owership Assistance Program
http://iowafinanceauthority.gov/Public/Pages/PC79LN25
Iowa Title Guaranty
http://www.iowafinanceauthority.gov/TitleGuaranty/Residential
Kansas
http://www.kshousingcorp.org/homebuyer-assistance.aspx
Kentucky
http://www.kyhousing.org/Home-Buyers/Pages/default.aspx
Down Payment Closing Cost Assistance
http://www.kyhousing.org/Home-Buyers/Pages/Down-Payment-Closing-Cost-Assistance.aspx
Hardest Hit Fund (HHF) DAP
http://www.kyhousing.org/make-the-move/Pages/default.aspx
Home Buyer Tax Credit
http://www.kyhousing.org/Home-Buyers/Pages/Home-Buyer-Tax-Credit.aspx
Louisiana
https://www.lhc.la.gov/homebuyers
MRB Home and Assisted
https://www.lhc.la.gov/mrb-homebuyers#
Market Rate GNMA Program
https://www.lhc.la.gov/gnma-homebuyers
LHC Preferred Conventional Program
https://www.lhc.la.gov/preferred-homebuyers
LHC Choice Conventional Program
https://www.lhc.la.gov/choice-homebuyers#
LCH Advantage Program
https://www.lhc.la.gov/advantage-homebuyers
Delta 100 Program
https://www.lhc.la.gov/delta-homebuyers
Mortgage Credit Certificate Program
https://www.lhc.la.gov/mcc-homebuyers
Soft Second Program
https://www.lhc.la.gov/soft-second-homebuyers
Down Payment Assistance Programs
https://www.lhc.la.gov/down-payment-assistance-homebuyers#
Maine
http://www.mainehousing.org/programs-services/homebuyer/home-loan
First Home loan:
http://www.mainehousing.org/programs-services/homebuyer/home-loan#Loan
Maryland
https://mmp.maryland.gov/Pages/default.aspx
Programs:
MMP 1st Time Advantage with 3% Assistance
https://mmp.maryland.gov/Pages/1stTimeAdvantage3.aspx
MMP 1st Time Advantage
https://mmp.maryland.gov/Pages/1stTimeAdvantage.aspx
Maryland Mortgage Loan Assist
https://mmp.maryland.gov/LoanAssist/Pages/default.aspx
Maryland Mortgage Grant Assist
https://mmp.maryland.gov/GrantAssist/Pages/default.aspx
Maryland Mortgage Rate Assist
https://mmp.maryland.gov/RateAssist/Pages/default.aspx
Partner Match
https://mmp.maryland.gov/Pages/Downpayment.aspx
Maryland HomeCredit
https://mmp.maryland.gov/Pages/MDHomeCredit.aspx
Maryland SmartBuy Program
https://mmp.maryland.gov/Pages/SmartBuy/default.aspx
Massachusetts
https://www.masshousing.com/portal/server.pt/community/home_ownership/223/home_ownership_home
MassHousing Mortgage
https://www.masshousing.com/portal/server.pt/community/home_buyer_loans/226/masshousing_loan
Operation Welcome Home
https://www.masshousing.com/portal/server.pt/community/home_buyer_loans/226/operation_welcome_home
Down Payment Assistance
https://www.masshousing.com/portal/server.pt/community/home_buyer_loans/226/down_payment_assistance
Michigan
https://www.michigan.gov/mshda/0,4641,7-141-45866---,00.html#!#homebuyers
Programs:
MI Home Loan Mortgage
https://www.michigan.gov/mshda/0,4641,7-141-45866_45868-370762--,00.html
MI Home Loan Flex
https://www.michigan.gov/mshda/0,4641,7-141-45866_45868-284858--,00.html
Step Forward Down Payment Assistance Loan
https://www.michigan.gov/downpayment/0,8844,7-353-88583---,00.html
Mortgage Credit Certificate (MCC)
https://www.michigan.gov/mshda/0,4595,7-141-45866_45868-216692--,00.html
Individual Development Account
https://www.michigan.gov/mshda/0,4641,7-141-45866_45868-172118--,00.html
Housing Education Program
https://www.michigan.gov/mshda/0,4641,7-141-45866_45868-177801--,00.html
Minnesota
Mississippi
https://www.mshomecorp.com/how-we-help/helping-homebuyers/
Missouri
http://www.mhdc.com/homes/index.htm
Programs:
First Place Loan Program
http://www.mhdc.com/homes/firstplaceloans/index.htm
Mortgage Credit Certificate (MCC)
http://www.mhdc.com/homes/mcc/index.htm
Montana
http://housing.mt.gov/Homebuyers
Programs:
Regular Bond Loan Program
http://housing.mt.gov/HBRegBond
Set Aside Program
http://housing.mt.gov/HBSetaside
Montana Veterans’ Home Loan
Down Payment Assistance
80% Combined Program
http://housing.mt.gov/HB80Combined
Habitat for Humanity
http://housing.mt.gov/HBHabitat
Mortgage Credit Certificate
Board of Investments
Disabled Accessible Affordable Homeownership
Nebraska
https://www.nifa.org/homebuyer
Programs
https://www.nifa.org/homebuyer/loan-programs
Eligibility
https://www.nifa.org/homebuyer/eligibility
Interest Rates
https://www.nifa.org/homebuyer/interest-rates
Nevada
https://www.homeispossiblenv.org/
Programs:
Home is Possible
https://www.homeispossiblenv.org/home-possible-nevada-down-payment-assistance-program
Home is Possible for Heroes
https://www.homeispossiblenv.org/program/home-possible-heroes
Mortgage Credit Certificate
https://www.homeispossiblenv.org/home-possible-mortgage-credit-certificate
Home is Possible for Teachers
https://www.homeispossiblenv.org/program/home-possible-teachers
New Hampshire
https://www.gonewhampshirehousing.com/
Programs
Homebuyer Tax Credit
https://www.gonewhampshirehousing.com/our-programs/homebuyer-tax-credit
Mortgage Programs:
https://www.gonewhampshirehousing.com/our-programs/mortgage-programs
New Jersey
https://www.njhousing.gov/homeownership/
Programs
NJHMFA Down Payment Assistance Program
https://www.njhousing.gov/dca/hmfa/homeownership/buyers/dpa/
First-Time Homebuyer Mortgage Program
https://www.njhousing.gov/dca/hmfa/homeownership/buyers/first/
Police and Firemen's Retirement System Mortgage Program
https://www.njhousing.gov/dca/hmfa/homeownership/buyers/retire/
New Mexico
http://www.housingnm.org/homebuyers/home-buyers
Programs
First Home Program
http://www.housingnm.org/homebuyers/first-home
First Down Program
http://www.housingnm.org/homebuyers/first-down
NextHome Program
http://www.housingnm.org/homebuyers/next-home-program
New York
Programs
SONYMA Neighborhood Revitalization Program
http://www.nyshcr.org/Topics/Home/Buyers/SONYMA/SONYMA-NRP.htm
SONYMA Graduate to Homeownership Program
http://www.nyshcr.org/Topics/Home/Buyers/SONYMA/SONYMA-grad2home.htm
Conventional Plus Progran
http://www.nyshcr.org/Topics/Home/Buyers/ConventionalPlusProgram.htm
FHA Plus Program
http://www.nyshcr.org/Topics/Home/Buyers/FHAPlusProgram.htm
Manufactured Home Advantage Program
http://www.nyshcr.org/Topics/Home/Buyers/MHAP.htm
Down Payment Assistance Loan (DPAL)
http://www.nyshcr.org/Topics/Home/Buyers/SONYMA/DownPaymentAssistanceLoan(DPAL).htm
North Carolina
https://www.nchfa.com/home-buyers
Programs
NC Home Advantage Mortgage
NC 1st Home Advantage Down Payment
NC Home Advantage Tax Credit
North Dakota
https://www.ndhfa.org/Homeownership/Intro.html
Programs:
First Home
https://www.ndhfa.org/Homeownership/Firsthome.aspx
Home Access Program
https://www.ndhfa.org/Homeownership/Homeaccess.aspx
North Dakota Roots
https://www.ndhfa.org/Homeownership/Roots.aspx
Major Home Improvement Program
https://www.ndhfa.org/Homeownership/Majorhomeimprovement.aspx
Targeted Area Loan Program
https://www.ndhfa.org/Homeownership/TargetedAreas.html
Ohio
Programs
First-Time Homebuyer
https://myohiohome.org/firsttimehomebuyer.aspx
Your Choice! Down Payment Assistance
https://myohiohome.org/downpaymentassistance.aspx
OHFA Advantage
https://myohiohome.org/homebuyeradvantage.aspx
Grants for Grads
https://myohiohome.org/grantsforgrads.aspx
Ohio Heros
https://myohiohome.org/ohioheroes.aspx
Mortgage Tax Credit
https://myohiohome.org/mortgagetaxcredit.aspx
Target Area Loan
https://myohiohome.org/Geodata/Default.aspx
Next Home
https://myohiohome.org/nexthome.aspx
Renovate Ohio
https://myohiohome.org/renovateohio.aspx
Oklahoma
Programs
https://www.ok.gov/ohfa/Homebuyers/index.html
Oregon
https://www.oregon.gov/ohcs/Pages/oregon-bond-loan-program.aspx
Pennsylvania
https://www.phfa.org/homebuyers/
Programs
Home Purchase
https://www.phfa.org/programs/homepurchase.aspx
Purchase Assistance
https://www.phfa.org/programs/assistance.aspx
Refinance Options
https://www.phfa.org/programs/refinance.aspx
Home Improvements/Repairs
https://www.phfa.org/programs/repairs.aspx
Rhode Island
Programs
First Down - Down Payment Assistance
https://loans.rihousing.com/First_Down/
First Homes
https://loans.rihousing.com/FirstHomes/
Beyond First Homes
https://loans.rihousing.com/Beyond_FirstHomes/
Lasting Homes
https://loans.rihousing.com/LastingHomes/
Septic and Sewer
https://loans.rihousing.com/SepticSewer/
South Carolina
http://www.schousing.com/Home/HomeBuyers
Programs
SC Housing Homebuyer Program
http://www.schousing.com/Home/HomebuyerProgram
Mortgage Credit Certificates
http://www.schousing.com/Home/MortgageCreditCertificates
Palmetto Home Advantage
http://www.schousing.com/Home/Palmetto-Home-Advantage
Hardest Hit Fund Down Payment Assistance
http://www.schousing.com/Home/HHF-Down-Payment-Assistance
Income/Home Price Limits
http://www.schousing.com/Home/HomeLimits
South Dakota
http://www.sdhda.org/home-ownership/first-time-homebuyers.html
Tennessee
Programs
Down Payment Assistance
https://thda.org/homebuyers/down-payment-assistance-1
Great Choice Home Loans
https://thda.org/homebuyers/great-choice-home-loans
Texas
http://www.tdhca.state.tx.us/homeownership/
Programs
My First Texas Home
http://www.tdhca.state.tx.us/homeownership/fthb/my-first-texas-home.htm
My Choice Texas Home
http://www.tdhca.state.tx.us/homeownership/fthb/my-choice-texas-home.htm
Texas Mortgage Credit Certificate Program
http://www.tdhca.state.tx.us/homeownership/fthb/mort_cred_certificate.htm
Utah
https://utahhousingcorp.org/homebuyer
Programs
Down Payment Assistance
https://utahhousingcorp.org/homebuyer/programs/downPaymentAssistance
Home Loans
https://utahhousingcorp.org/homebuyer/programs/homeLoans
Grants for Veterans
https://utahhousingcorp.org/homebuyer/programs/grantsForVeterans
Vermont
https://www.vhfa.org/homebuyers/buyahome
Programs
https://www.vhfa.org/homebuyers/loanprograms
Virginia
https://www.vhda.com/Pages/Home.aspx
Programs
Home Loans
Https://www.vhda.com/Homebuyers/VHDAHomeLoans/Pages/VHDAHomeLoans.aspx#.XEi1v1zYq70
VHDA Plus Second Mortgage
https://www.vhda.com/Homebuyers/VHDAHomeLoans/Pages/VHDAHomeLoans.aspx#.XEi17FzYq70
Washington
http://www.wshfc.org/buyers/index.htm
Programs:
Home Advantage
http://www.wshfc.org/buyers/HomeAdvantage.htm
House Key Opportunity Program
http://www.wshfc.org/buyers/key.htm
Energy Spark Home Loan
http://www.wshfc.org/EnergySpark/index.htm
Mortgage Credit Certificate
http://www.wshfc.org/buyers/MCCprogram.htm
West Virginia
Programs
Homeownership Program
https://www.wvhdf.com/home-buyers/homeownership-program
Down Payment/Closing Cost Assistance Program
https://www.wvhdf.com/home-buyers/down-paymentclosing-cost-assistance
Moving Up Program
https://www.wvhdf.com/home-buyers/movin-up-loan-program
On-Site System Program
https://www.wvhdf.com/home-buyers/on-site-systems-loan-program
WVHDF Refinance Program
https://www.wvhdf.com/home-buyers/wvhdf-refinance-program-2
USDA 502 Direct Loan Program
https://www.wvhdf.com/home-buyers/usda-502-direct-loan-program
Wisconsin
https://www.wheda.com/Home-Buyers/
Programs
https://www.wheda.com/Home-Buyers/Available-Programs/
Wyoming
Coaching Tips for Renters Saving up a Down Payment

Loan officers come across people who have never owned a home, and don’t even know how to go about it. The American Bankers Association is offering tips to help consumers prepare for one of the first steps in the home buying process: saving for a down payment. Before transitioning from renter to home owner, potential buyers must typically save between 5 and 20 percent of the home’s value for the down payment – and it may not be as difficult as renters think!
BUDGET
First, develop a budget and timeline. What kind of home does the renter have their eye on? What is the price estimate? Determine how much the borrower will need for a down payment, and then work backwards to create a budget and calculate how much should be, and can be, saved every month. That will help the borrower gauge when they will be ready to transition from renter to homeowner. Some renters establish a separate savings account for the down payment to lower the temptation to spend it. Make the monthly contributions automatic.
SHOP AROUND
Potential buyers should shop around to reduce major monthly expenses on current expenses such as car insurance, renter’s insurance, health insurance, cable, internet or cell phone plans. Not that only renters should do this, but there may be deals or promotions available that allow anyone to save hundreds of dollars by adjusting contracts. On the flip side, monitor spending. With online banking, keeping an eye on spending is easier than ever, and seeing where most of one’s income is going is very enlightening.
FIRST-TIME HOMEBUYERS
Lastly, loan officers can help potential borrowers look into state and local home-buying programs. Many states, counties and local governments operate programs for first-time homebuyers. Some programs offer housing discounts, while others provide down payment loans or grants.
There are plenty of benefits to home ownership, and buying one is an event to be celebrated – but laying the groundwork is critical! And originators are in an ideal place to help borrowers on their way
Is a down payment the only thing keeping you from purchasing a home?
Does it Make Financial Sense to Buy a House? Yes!
Lenders Know That There are More Millennials than Baby Boomers
Subscribe below for more information.
The Mortgage Credit Certificate for Indiana First-Time Home Buyers

The Mortgage Credit Certificate (MCC) Program was established by Congress in 1984 as a way to provide assistance for first-time home buyers with the requisite low to moderate income levels. The program is funded by the federal government and one of the most comprehensive home buyer assistance programs. Many buyers who may qualify, however, know nothing about the program and its benefits.
Home buyers can apply for the MCC when they complete their mortgage loan application. The MCC covers the purchase of any single family or 2-4 unit dwelling that will serve as the borrower’s primary residence. If the buyer plans to use the property as an investment or for vacation purposes, it is not eligible for the MCC. The property value cannot exceed a maximum that differs by location. In addition, the buyer must apply at the time of the initial home purchase and not during a later financing of an existing loan. Under the MCC guidelines, a first-time home buyer is anyone who has not owned a primary residence in the past three years. So, having owned a home at some point in the past does not automatically disqualify a borrower from the MCC Program.
Indiana does have a couple of exceptions to the first-time home buyer requirement. Eligible veterans may be exempt from the first-time home buyer limitation. In addition, properties that are located inside what are known as “Targeted Areas” are exempt from the first-time home buyer requirements. There are thirty counties in the state of Indiana that are categorized as special “Targeted Areas.” In addition, there are many qualifying census tracts outside of the counties designated as “Targeted Area.” Borrowers, therefore, should check the location of the property they are buying to see if qualifies for an exemption to the first-time home buyer requirement.
The MCC Program works by providing a federal tax credit each year of up to $2,000. The actual amount of the tax credit equals a percent of the annual interest paid and accrued on the borrower’s mortgage loan. The federal income tax credit essentially creates a source of extra income for the borrower that could be used on the mortgage. This effective additional income also assists home buyers by improving some of the payment-to-income ratios banks use when evaluating potential borrowers.
Finally, the amount of the tax credit cannot exceed the borrower’s annual income tax liability after accounting for all sources of tax credits and deductions. For example, a borrower receiving the maximum $2000 tax credit must have a tax liability at the end of the year that exceeds $2000 after accounting for all other tax credits and deductions. In addition, the MCC Program tax credit reduces the amount of mortgage interest tax deduction that a borrower can claim. The itemized mortgage interest tax credit is reduced by the amount of the MCC tax credit.
For More information on this program or information to see if you qualify Contact Us Here
Is a down payment the only thing keeping you from purchasing a home?

Is a down payment the only thing keeping you from purchasing a home?
For many young or first-time buyers, the thought of coming up with 20% to put down on a home is daunting. When you don't have equity from an existing home's sale to help improve your down payment amount, you are forced to save the entire amount. But before you assume that you have no option but to come up with 20% before entering the home buying market, you should know that there are other options available to you. Here are some of them.
Low Down Payment Loan Options
The first place to look is with some of the many low down payment loan options available for you. It's actually no longer true that you have to have a 20% down payment to buy a home. For first-time buyers especially, quite a number of programs are available to help you get past this hurdle.
The first place to look is with government-backed loans. Government-backed loans are guaranteed, at least in part, by a government agency, such as the Federal Housing Administration, USDA, or the VA. By purchasing a home using one of these loans, you put the lender at less risk, and thus the lender is willing to take on a loan with less down payment.
The FHA-backed loans allow you to pay as little as 3.5% down. You will have to pay mortgage insurance, but you won't need 20% down. If you or your spouse is a qualified service member or veteran, you can get a home for no down payment at all through the VA home loan program. While you pay a funding fee, that fee can be rolled into your loan and isn't much. The USDA also allows those buying in non-city areas the option to buy with no money down through the USDA home loan program.
You can also get a conventional loan with less than 20% down if your credit is fairly good. Some lenders will offer loans for as little as 3% down, and a few will allow select borrowers to burrow the full cost of the home. Keep in mind that you will pay mortgage insurance in this case as well.
If you choose a loan program that requires mortgage insurance, you aren't necessarily stuck paying that amount for the life of the loan. You can ask for it to be removed or refinance the home when property values change and you no longer own more than 80% of the home's value. Also, certain loans will automatically drop the insurance after a set number of years.
Friends and Family
If you have trusted friends and family who have access to money, you may be able to set up a loan for the down payment amount. However, a loan, even if it's from family, needs to be documented, and your lender will ask for that documentation. It may change your debt-to-income ratio, which may lower your borrowing power. Still, this can be an effective way to get the money you need for a down payment.
If your friends and family wish to give you a gift, you will need documentation that the gift was, in fact, a gift, and that the giver had the money to make the donation. However, if you have friends and family willing to do this for you, the gift won't lower your borrowing power. That said, some lenders are hesitant to lend to customers who have no money at all of their own to put down. One of the reasons lenders ask for a down payment is the fact that it shows the borrower is disciplined enough to save money for a major purchase, and that shows financial stability.
Local or State Down Payment Assistance Programs
Every single state has some sort of a program to help first-time or low-income buyers get the money they need for their down payment. While making a list of these programs isn't possible because they change regularly, it can be an option for some homebuyers. It may be location specific or borrower specific, so you will want to talk to your potential lender or your real estate agent about the possibilities in your area. However, make sure you look into all of these possibilities before assuming you can't afford a down payment.
Ohio: Ohio Housing Financing Agency
Kentucky: Kentucky Housing Corporation
Indiana: Indiana Housing and Community Development Authority
Tennessee: Tennessee Housing Development Authority
As you can see, there are options for those who don't have the moony upfront for a 20% down payment. If you're ready to enter the home buying market, and don't think you can save quite enough for a down payment, you have options! Talk to your lender or your agent about those options, and start looking for your new home.
BLOG DISCLAIMER
Content on this site is for informational purposes only. It is not to be construed as legal, financial, personal or other advice. Information and opinions offered are those of independent sources and may not be endorsed by American Mortgage Service Company and/or AmericanMortgage.com. We make no representations as to the suitability or validity of information in a blog on this site. We are not liable for any errors or content of blogs or for any losses, injuries or damages arising from its display or use. There is no obligation to update information provided in a blog on this site.