Purchasing your first home is a daunting but exciting part of life. Purchasing your own home comes with added stability and freedom, but that’s not all. First-time home buyers can get something that other home buyers don’t get: first-time buyers’ benefits.
The Benefits of Being a First-Time Home Buyer
Here are some benefits first-time buyers can look forward to:
- Affordable Mortgage: First-time buyers often get access to perks like more affordable mortgages with lower interest rates and lowered mortgage insurance to make repayment easier. For example, some mortgage brokers offer first-time buyers programs with lower down payments.
- Tax benefits: Becoming a new homeowner may actually help you get better tax returns and increase your annual savings. Homeowners can take advantage of tax breaks that include deductions on property tax payments.
- Owning appreciative assets: Owning property is a great investment strategy, as buying your home in the right market can mean it will appreciate in value. The more you maintain and renovate your home, the higher your property value can increase.
- Predictable monthly payments: Unlike unpredictable landlords, your mortgage payments should generally remain static if you have a fixed-rate mortgage. Predictable monthly payments result in higher payment success so that one day, you will own your home outright.
- Building a secure retirement: Owning a home is a great way to plan for retirement because you will have a paid-off property that has appreciated in value, or you could sell your home for more than what you bought it for and downsize it in your retirement. An additional benefit of owning a home for retirement is that you can rent it out as additional income.
Who Qualifies as a First-Time Home Buyer?
Simply not being a homeowner before is not a qualifying factor for experiencing the benefits that first-time buyers get.
In addition to not being a homeowner before, you need to have not owned a home in the past three years, you have been a single or stay-at-home parent with a jointly owned marital home in the past three years, or you have not solely owned a joint marital home or second investment properties.
Potential home buyers need to meet not only the three-year criteria but also certain credit score requirements. You will need a credit score of at least 620 or more, depending on what first-time homebuyer program you are using. You will also need a consistent income with an employment history and a 43% or lower debt-to-income ratio (DTI).
Buy Your First Home in Florida with Florida State Mortgage Group
If you are ready to buy your first home and experience some of these benefits for yourself, contact the friendly team at Florida State Mortgage Group to help you purchase your dream first home. Call us at (954) 359-3000 to schedule a free consultation.
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