Here’s how to decorate your new home from scratch
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November 16, 2021
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Buying a home is stillconsidered a key aspect of the American dream, as a home is typically anappreciating asset that grows in value over time. Being a first-time buyer canopen the door to tax breaks and federally backed loans if you don’t have theusual minimum down payment—ideally, 20% of thepurchase price for a conventional loan—or are a member of a certain group. Andyou may qualify as a first-time buyer even if you’re not a novice.
You may also be able totake advantage of down payment assistance or closing cost assistance programsas a first-time buyer. These programs, which can be operated by stategovernments and nonprofit organizations, can provide you with funding to coveryour down payment and closing costs in order to make your home ownership dreama reality.
Purchasing a home with lessthan 20% down can mean paying private mortgage insurance (PMI) until you reach78% to 80% equity in the home.1
Qualificationsof First-Time Buyers
Who is a first-time buyerfor a home? According to the U.S. Department of Housingand Urban Development (HUD), a first-time homebuyer is someone who meets any of thefollowing conditions:
- An individual who has not owned a main residence for three years. If you’ve owned a home but your spouse has not, then you can purchase a place together as first-time homebuyers.
- A single parent who has only owned a home with a former spouse while married.
- A displaced homemaker who has only owned a home with a spouse.
- An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.
- An individual who has only owned a property that was not in compliance with state, local, or model building codes—and that cannot be brought into compliance for less than the cost of constructing a permanent structure.2
That broad definition couldmake it easier for you to qualify as a first-time buyer and enjoy some of theassociated benefits that go along with buying a home for the first time.
