1st Time Buyer Programs

The most popular loan program that 1st time buyers use is FHA. It requires a low down payment of 3.5% which can actually be gifted to you from a relative. You can request that the seller pay for all or part of your closing costs, which means that you can own a house for very little out of pocket.

Local communities also have different programs. Locally, we have a program called La Casa. La Casa is out of Goshen and only works with certain lenders, but they do offer a way for people to buy a home with little money out of pocket. There are certain income criteria that have to be met to qualify for this loan program.

With the “0 Down” programs having been taken away, for the most part, within the last year or so, another program that is becoming increasingly popular is USDA. Besides the income restrictions that have to be met, the home also has to meet location restrictions. There is a mapped area on the USDA website where you can see if a home qualifies. For it to qualify, it has to considered a rural area and the home cannot have a swimming pool. In the Michiana area, Middlebury, Bristol and parts of southern Elkhart county qualify. Large parts of southern Michigan qualify as well. As does parts of the western and south sides of St. Joseph county in Indiana.