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Budgeting For Beginners


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Budgeting For Beginners

Few things are more frustrating than running out of money. When you are staring at an empty checking account, it can feel like the whole world is against you--especially anyone who you owe money. However, a few years ago I learned a few tricks for budgeting that really made a difference in my life. I have been able to get my spending under control and learn how to save. I have also learned how to prioritize my spending so that I don't have to worry about running out of cash. This website is here for anyone who has ever struggled with money.

Two Secret Loan Programs That Can Help You Buy A Home

FHA and VA loans are well-known mortgage programs that can help people purchase homes. However, they're not the only options available, nor may they be the best option available for your particular situation. Here are two lesser-known loan programs you should also check into that may work out better for you.

HUD's Good Neighbor Door Program

This is one program where your occupation can net you a really great deal on a home. In this program, people who are employed as police officers, teachers, firefighters, or emergency medical technicians can purchase a home for 50 percent of its market value. For instance, if the home is valued at $200,000, you could buy it for $100,000.

The catch is these homes are typically located in troubled areas that HUD is working to revitalize. Using the Good Neighbor Next Door program, HUD hopes to rebuild damaged neighborhoods (e.g. areas with lots of foreclosures or very low income) by positioning much-needed professionals within them who will renovate the homes they purchase and possibly attract other buyers.

Additionally, the discount is actually a silent loan. You are required to live in the area for a minimum amount of time (usually 36 months), at the end of which HUD will forgive the loan. However, if you move or sell the home before the time period is up, you will be required to repay that money.

Although this particular program doesn't cover the entire home price and you would still need to get financing for the uncovered half, this could be a great way to get a home that will provide you with a ton of equity after a few years of ownership.

USDA Homebuyer Assistance Program

If you prefer to live in a rural area, or at least don't mind purchasing a home in one, you may want to check out the homebuyer assistance program offered by the USDA.

One program the agency offers is the Single-Family Housing Direct Home loan. This program is designed to help low-income people who don't have any place to live purchase homes in eligible rural areas. The amount of money you can get is based on your income, which can't be any higher than the low-income limit for the area. Additionally, the home must be smaller than 2,000 feet, not be used for any income-producing activities (so no AirBNB), and not have a pool. In return, you get a low-rate loan that you can take up to 38 years to repay.

For more information about these or other loan programs that can help you get into the house of your dreams, contact a local lender such as First Mortgage Company, Inc.