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You're finally ready to make
the dream purchase: a new home.
Ready to plant seeds in the yard and grow vegetables.
Ready to sit on the porch and sip mint juleps. Or merely ready
to lock the door, survey your digs and know you actually own
the joint.
Now you just have to figure out how to make it
work financially. You may have struggled in the first years
out of college and maybe forgotten to pay a few debts off on
time, so now your credit isn't so great. Or maybe you have great
credit but no money saved up, even though you make a decent
living at your job. Out of luck? Hardly.
Depending whether you have great credit or so-so
credit,enough for a down payment or little to pay up front,
there are programs that can still make it possible for you to
qualify for a loan and move a step closer to buying your first
house.
Need a Down Payment?
If you're a bit shy of the down payment, take
heart. Sometimes you can get the money you need through your
job. If you contribute to a 401(k) retirement plan, you may
be able to borrow from it to buy your house, as long as you
pay it back into the account later on. Some companies offer
programs to help their employees purchase their first home,
so check out what your employer provides.
There are also federal agencies that can help
you find more information on lending and mortgages. Although
Fannie Mae and Freddie Mac do not make loans directly to homebuyers,
they can help you find apporved lenders and help in the loan-finding
process.
Have Bad Credit?
If you don't have the greatest credit in the world,
other government agencies can help.
The Federal Housing Administration has a loan
program that's set up for people with less than stellar credit.
The interest rates may be a bit higher than loans you'd get
through Fannie Mae or Freddie Mac, but the important thing is
that you're able to borrow the money. And if you're unable to
make a payment, the FHA will insure your mortgage and cover
the payments you miss. But do this at your own risk because
the FHA will then raise your monthly payments and require you
to repay any money you borrow, plus interest, at then end of
your mortgage term. You can find out more from FHA at www.hud.gov/fha.
Article continued at http://www.ivillage.com/money/life_stage/startingout/articles/0,,165372_21695-2,00.html
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