Virginia Real Estate Attorney Giving You the Representation You Need to Manage Your Digital Assets
For many Americans, home ownership is a lifelong dream. While buying a home used to be common, the shifting economy of the past few decades has made renting the norm for many Millennials and Zoomers. Due to this lack of experience, most people who find themselves in the position of being able to buy their first home are unaware they can legally qualify for certain discounts. This is especially true in Virginia. In an effort to incentivize home ownership, the state of Virginia has instituted a number of programs to make first time home ownership easier than ever.
What Should I Consider as a First-Time Home Buyer in Virginia?
Home ownership is a big decision. Because of this, you’ll want to take a variety of factors into consideration before starting your home buying journey. Some of these factors include:
- Personal Finances
- Current Market Conditions
- Home Ownership Goals
- Mortgage Options
Your personal finances will play a large part in your ability to buy a home. You’ll need to put money down on any home you decide to purchase. How much you put down will depend on your credit, the price of the home, and other factors.
You’ll also need to consider current market conditions. Due to the volatility of the real estate market, there have been different periods over the past fifteen years when it has been more and less ideal to buy a home. You’ll want to be aware of market prices and mortgage rates prior to making the decision to purchase.
Another consideration is your home ownership goals. If you don’t plan on starting a family, you may want to only consider smaller homes or even a condo. If you plan on having a family, you’ll want to consider larger homes, and plan ahead for how many children you may want to have. You may also need to consider whether you plan on having members of your extended family move in one day. Many people make the mistake of purchasing homes larger than necessary for their life goals. This can harm them financially in the long run if they find themselves unable to make payments.
Another consideration are mortgage rates. Rates regularly fluctuate. Even if your financial situation is stable and you have a significant amount of cash on hand, it could be valuable in the long-run to wait for rates to change. This could have a positive long-term impact on you and your family.
What Options Do I Have as a First-Time Home Buyer in Virginia?
First time home buyers have numerous options available to them. This is because both the state of Virginia and the US government want to encourage home ownership. Being a first-time buyer comes with certain advantages and incentives not available to people who have already owned homes in the past. These incentives allow people to more easily purchase their first homes. These include:
- Federal Housing Assistance
- USDA Loans
- VA Loans
- Down Payment Assistance
- Variable Income Limits
- Virginia Housing Down Payment Assistance Grant
Federal Housing Assistance (FHA) is provided to low-income, first-time home buyers. This allows you to purchase a home with a lower credit score in exchange for putting more money up front. For example, if your credit score is at least 580, you can purchase a home for 3.5% down. If your credit score is 500, you’ll need to put 10% down.
USDA loans are for people planning to buy homes in rural areas. You must select a home that is within the boundaries of the U.S. Department of Agriculture. You’ll also need to earn less than 115% of the local median income. The advantage with a USDA loan is you are not required to make any down payment.
VA Loans are for buyers who have served with the US armed forces. Like a USDA loan you’ll not be required to make a down payment. Unlike a USDA loan however you do not have to select a home in any specific geographic region. VA Loans also allow buyers to roll closing costs into the value of the loan, and have more lax credit requirements than conventional or FHA loans.
Down Payment Assistance is offered through Virginia’s HOMEownership Down Payment and Closing Cost Assistance program. This is a program specifically for first-time buyers. It offers 15% down payment assistance for buyers. This is one of the most generous first-time buyer assistance programs in America.
Variable Income Limits benefit those first-time home buyers looking to purchase a home in the vicinity of Washington, D.C. Many first-time buyer programs limit the amount of money you can make while still qualifying for assistance. If you want to buy a home in the D.C. area, this limit is significantly raised.
The Virginia Housing Down Payment Assistance Grant is a special grant for first-time buyers. It offers monetary assistance to make a down payment on a home in Virginia. Because it is a grant, you’ll never have to pay back the amount. In order to qualify, you must first have qualified for a conventional or FHA loan. You must also have a household income within certain limits.
What Should I Do if I am a First-Time Home Buyer in Virginia?
There are numerous incentives available to first-time home buyers in Virginia. Many of these involve complex legal considerations such as the location of the home, your income, your credit score, and more. If you attempt to buy a home on your own, you could miss out on financial incentives and end up spending more than you need. You could also miss out on your dream home because you thought it was too expensive or you couldn’t qualify.
If you’re a first-time home buyer in Virginia, contact the law firm of Ashwell & Ashwell, PLLC today. We’re located at 21 Culpeper St, Warrenton, VA 20186, a third of a mile South of Eva Walker Park and one mile East of the Fauquier County Health Department building. Our attorneys are experienced in real estate law and know what advantages and programs to look for so you don’t miss out on making your first home the forever home you’ve always dreamed of. If you or a loved one are a first-time home buyer about to embark on the adventure of a lifetime in Virginia, call Ashwell & Ashwell, PLLC today at 540-386-1277 or send us an email. Your dream house is waiting.