Buying a home is a dream for most of us, and it is hard to get one. From the tedious paperwork to the people and fees involved, there are tons of important things that go into buying a home. Additionally, if you’re a first-time home buyer, there is a whole list of queries. But before you jump to conclusions, here are four of the loan programs that can benefit first-time home buyers. Read on!
First-time home buyers’ loan programs
FHA
The Federal Housing Administration (FHA) is one of the agencies within the U.S. Department of Housing and Urban Development. This is a good loan option for first-time home buyers. Moreover, the FHA program is also beneficial for those who have a shaky credit history.
The FHA assures a portion of home loans that broadens the acceptance standards of the lenders. By applying for FHA, borrowers can qualify with as low as 3.5% down payment.
USDA
The U.S. Department of Agriculture has a home buyers assistance program. To be eligible for this program, you don’t have to live on a farm. The USDA program for home buyers’ assistance specifically targets rural areas and provides for 100% financing. The program also offers lender mortgage guarantee.
Moreover, there are income limitations that vary as per the region.
VA loans
The active-duty military members, veterans, and surviving spouses are offered home loans by the U.S. Department of Veterans Affairs. These loans offer viable interest rates, and you won’t even need down payment for buying the home. The VA loans guarantee part of the loan, which helps lenders provide special loan features.
In order to be eligible for the VA loan, one does not need a minimum credit score or is not required to pay for private mortgage insurance. If in any case there is difficulty in making mortgage payments, the VA negotiates with the lender on your behalf.
Native American Direct Loan
The Native American Direct Loan program has been helping the Native American veterans and their spouses buy homes on federal trust lands. Once an individual is eligible for the Native American Direct Loan, there is no need of a down payment or private mortgage insurance. In this case, the VA serves as the lender. If you choose the first-time home buyer loan, you get a fixed-rate mortgage for 30 years and low closing costs. So, if you’re eligible, this is one of the preferred first-time home buyer loan program options you can choose.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.