Whether you’re a first-time home buyer or a seasoned one, there are many homeownership programs available to help you achieve your dream of owning your own home; especially for first-time buyers looking ahead to the fresh, New Year.

Some are sponsored by federal agencies, while others are provided by nonprofits and private organizations. Others even offer down payment assistance, mortgage loans and education courses. It’s important to know the differences, so let’s get into it.

Eligibility

If you’re a first-time homebuyer in America, there are a number of programs that may be available to help you achieve your dream and they’re typically geared toward low to moderate-income buyers and can provide down payment assistance, mortgage rate discounts, and home buying education.

The first step in applying for a home buying program is to get pre-approved on a mortgage loan as this will give you a clearer picture of your budget and allow you to see what type of home is available for you to buy either outright or via financing options.

Another option is to search for a local city or state government’s homeownership program which often include mortgage rate reductions, down payment and closing cost assistance (www.fdic.gov/down-payment), and home buying education which is something you can get in most areas that offer such financial assistance.

These programs are a great option for anyone who is unable to afford a mortgage on their own, especially in a tight housing market, but they may also be able to help you save money on your monthly mortgage payments, and they can sometimes have additional benefits like tax credits or grants.

For example, the FHA offers a loan program that’s designed to make homeownership more affordable for people with lower credit scores and addition to lowering your down payment requirement, this loan program can also lower your interest rates by up to two percentage points below standard 30-year fixed-rate mortgages.

Requirements

If you’re looking to purchase a new home, there are several different types of assistance programs with different requirements that you may qualify for and they can include down payment assistance, tax credits and closing cost assistance.

These are all government-sponsored programs designed to widen the pool of eligible US home buyers and depending on your location, you might be able to receive help from a local or state housing authority as well.

This is a great way to increase your chances of getting a home for less money as some of these programs offer down payment assistance to first-time buyers, while others provide grants instead. Remember, you can also check with your mortgage lender or real estate agent for more information.

One of the most popular programs is offered by the Federal Housing Administration (FHA) because this program provides first-time buyers with low down payments and mortgages for properties with lower credit scores.

Another program in NYC is the Achieving the Dream Program, which is aimed at low-income homebuyers who want to renovate a one or two-family home and you, can learn about it here. It offers a mortgage with reduced interest rates and a lower down payment on a 30-year loan.

In addition, borrowers must attend an approved homebuyer education course and fall under the income and purchase price limits in their counties so if you live in the United States, you might be able to find an employer-assisted program that will help pay for your home buying costs. These programs are generally joint efforts between employers and state governments.

Timeline

When it comes to homeownership, no two experiences are alike as the path to acquiring that dream home can be long and winding. On the flip side, there are many programs and gizmos out there to help you make the big purchase a reality.

A brief look around your local real estate office should provide you with plenty of useful tips, tricks and tools to guide you through the buying process with ease, but keep in mind that the timeline for your home purchase is usually dictated by market conditions.

There are certainly a few things you can do to speed up the process, but first and foremost, you should be sure to get pre-approved for a mortgage and the process is a bit time consuming but it’ll pay off handsomely in the long run when it comes time to buy.

You’ll also want to check out your options for down payment and closing cost assistance from state and local housing agencies because using these resources will put you well on your way to a home of your own.

Costs

There are a number of programs that can help first-time buyers achieve their homeownership dreams and many of these programs offer obtainable, easily-paid down payment requirements, some other specific home locations, as well as very low interest rates among other benefits.

Some of them even prefer to work with specific types of homebuyers, including veterans, teachers and people with lower credit so before applying for any of these programs, it’s important to consider the costs associated with them.

These include the fees you’ll have to pay, such as mortgage application and appraisal fees, plus the cost of any down payment or closing costs and depending on the type of loan you choose, these fees can add up to a significant amount of money.

This is why it’s a good idea to consult with a financial advisor about the best way to manage your finances before deciding on a mortgage.