By ReviewMyMortgage Admin
Specialty Programs for First-Time Homebuyers
Discover special financial assistance programs aimed at first-time homebuyers, including Fannie Mae's Ready Buyer Program, IRA withdrawals without penalties, and state-specific down payment aids.
Exploring Financial Aids for First-Time Homebuyers
Navigating the world of home buying for the first time can be daunting. Thankfully, several specialty programs are tailored specifically to assist first-time buyers in making this significant life step more manageable.
Fannie Mae’s HomePath Ready Buyer Program
This program is particularly beneficial, offering up to 3% in closing cost assistance for the purchase of a Fannie Mae-owned foreclosed property. To qualify, buyers must first complete a mandatory home-buying education course, ensuring they are well-prepared to manage their new investment.
IRA Withdrawals for Home Purchases
For those looking to leverage their retirement savings, the IRS allows first-time homebuyers to withdraw up to $10,000 from an IRA without the early withdrawal penalty. For couples, this can mean up to $20,000 available for use toward purchasing a home. Taxes will still apply to withdrawals from traditional IRAs, while funds from Roth IRAs can be withdrawn tax- and penalty-free under certain conditions.
State-Specific Down Payment Assistance
Many states offer down payment assistance programs aimed at helping lower-income buyers and public servants. These programs vary by state but can significantly reduce the upfront financial burden for eligible first-time homebuyers.
The Bottom Line
These programs represent just a few ways first-time homebuyers can ease the financial strain of purchasing a home. By taking advantage of these opportunities, eligible buyers can make their dreams of homeownership a reality sooner and more affordably.
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