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3 Major Benefits Of Being A First Time Home Buyer

21 May 2015

Eva Kennedy

Are you working hard to purchase your first home? If so, the cost of a new home can easily cause you to feel a bit discouraged, especially if you aren't ready to make a down payment or deal with high monthly mortgage rates. Well, if you are a first-time home buyer, buying your first home can be much easier than you think, especially if you obtain a first-time home buyers loan. This sort of loan will make buying a home far easier than a traditional home loan, as there are many benefits, such as:

Affordable Down Payments:

Saving for your home's down payment can take years, as some home loans lenders may require you to put down a payment as high as 20% of the home's value. This can be a large sum of money, especially if you are seeking a high priced home. Well, rather than worry about saving forever, you will definitely find it easier to deal with the down payment with a first time home loan. A first time home loan has much easier terms when it comes to down payments, as you may only have to pay as high as 3.5% of the home's value, which is far less than a traditional home loan.

Tax Breaks:

Not only is making the down payment for your home easier with a first-time home buyer program, but you will also receive many tax breaks as well. With a first time home loan, you can deduct your property taxes and your mortgage interest on your taxes, which will help you save a great deal of money. This will make your first year of living in your home a bit more affordable.

More Buying Power:

Because you don't have to put the 20% down of the home's value down as a down payment, you will be able to have more buying power with the benefit of only putting the 3.5% down. This will allow you to have a much larger selection of homes to choose from, which will make buying your new home easier and more enjoyable.

With these benefits and services, you won't feel so overwhelmed to get started on your home purchase, as your requirements just got easier to fulfill. So, before you consider applying for a traditional home loan, definitely look at the benefits of a first time home loan, as you may be able to reap the benefits of this type of home loan.

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