14 First-Time Home Buyer Programs

November 13, 2023

Hi, Home Buyer.

The National Association of REALTORS® released its annual Profile of Buyers and Sellers report this week. 

The report details trends in home buying including demographics of U.S. home buyers, common home search tactics, and mortgage financing choices.

This year's report shows the typical first-time home buyer's down payment increased two points to 8 percent, which is the highest median down payment for first-time buyer since 1995. 

The report doesn't speculate on why the median down payment increased - especially during a period wherelow- and no-downpayment mortgages became more accessible. My guess: buyers want their offers to look more attractive in a competitive market.

Making a bigger down payment doesn't make your offer more attractive - having a mortgage pre-approval does.

So, to get a pre-approval without being forced to make a large downpayment, take a look at 14 programs for first-time buyers that require 5% down or less.

Read the article or watch the video. Just make sure you're not delaying your American Dream of Homeownership, trying to save for a down payment.

Happy Homebuying!

HOMEBUYER.COM STATISTIC OF THE DAY
Source: NAR

First-Time Home Buyer Statistics:

• Median down payment: 8%

• 38% said "savings for a downpayment" was the most difficult part of buying a home

• 41% of buyers looked at properties before calling a real estate agent

• 13% purchased new construction

• The typical first-time buyer is 35 years old

Data based on survey mailed to 189,750 recent home buyers who purchased a primary residence property between July 2022 and June 2023.

See Profile of Buyers and Sellers Report here.

MORTGAGE RATE CALENDAR
Upcoming events that may change the direction of mortgage rates

November 14, 2023: Consumer Price Index

November 15, 2023: Producer Price Indec

November 15, 2023: Retail Sales

November 16, 2023: Homebuilder Confidence

November 17, 2023: Housing Starts

November 17, 2023: Building Permits

Subscribe to our YouTube channel for additional insight.

FIRST-TIME HOME BUYER PROGRAMS
Status of select first-time home buyer bills in Congress
 
The Downpayment Toward Equity Act
A cash grant up to $25,000 for first-time, first-generation home buyers. 
- Last Action in Congress: June 21, 2023
- Status: Not yet passed
- Alternative Mortgages: Conventional 100, 100% USDA

The DASH Act
A $15,000 first-time home buyer tax credit.
- Last Action in Congress: March 7, 2023
- Status: Not yet passed
- Alternative Mortgages: HomeReady, HomePossible

The HELPER Act
A 100% mortgage for teachers & first responders.
- Last Action in Congress: May 10, 2023
- Status: Not yet passed
- Alternative Mortgages: Conventional 100, VA Mortgage

The LIFT Act
A mortgage that builds home equity faster.
- Last Action in Congress: June 22, 2023
- Status: Not yet passed
- Alternative Mortgages: None

The Middle Class Mortgage Insurance Premium Act

A bill to make mortgage insurance tax deductions permanent for homeowners earning less than $100,000/$200,000.

- Last Action in Congress: June 13, 2023
- Status: Not yet passed