Local ,state and federal governments have expressed their concern with two common problems faced regarding home buying. The decline of inner-city neighborhoods and the lack of affordable housing. If you qualify for one of these programs or if you are willing to live in an area selected by the city you may be able to purchase a good home for a very low price.
- Step 1
Many cities have programs for anyone willing to live in specific parts of the city. The city deeds over the home for a nominal amount to an individual for his personal use. The homes have been acquired by the city for old back taxes and usually require repair.
- Step 2
Mort age Revenue Bond Programs
This program provides special financing for first time buyers. This is the next best thing to any bargain price of a house. The program also provides special mortgage loans at interest rates significantly below the going rate in the market. The loans are offered by local lending institutions such as banks, savings and loans, and mortgage bankers who sell the loans to a local or state housing finance agency.
The borrower must fit certain criteria which includes not owning a home in the past three years.
- Step 3
Mortgage Credit Certificates
Alternative to the mortgage revenue bond programs and with same qualifications and requirements. The home buyer receives a certificate that allows the buyer to claim a credit on federal income taxes each year.