What Every Wake County Home Buyer Should Know About Loans

Nov 28, 2012

Are you currently thinking about investing in a Wake County home for sale? If you are (and you’re not independently wealthy),  you will more than likely need to secure a home loan.

And if this is your first time purchasing a home, you may consider getting a first-time home buyers loan.

Today, I’m going to tell you about the pros and cons of these types of loans.

Wake County Real Estate for Sale

A first-time home buyer loan is a specific type of loan that offers financial assistance to qualified buyers by using a number of different methods, including:

  • Very low down payments or none at all
  • Subsidized interest costs
  • Grants
  • Forgive loans
  • Defer payments

Those interested buyers who have never owned a home are usually great candidates for these types of loans. In addition, people who have not owned a home in more than three years may also qualify.

Still, interested home buyers should know that there are certain restrictions that come with your loan.

For instance, these stipulations may or may not say that:

  • You can’t buy homes in higher price ranges
  • You must make the newly purchased home your primary residence
  • You can’t rent the newly purchased home to others
  • The home must meet certain physical standards

While first-time home buyer loans are great for those who would not be able to purchase a home otherwise, there are certain drawbacks.

Here are some of those drawbacks:

  • You’re only allowed to look in a certain price range
  • You won’t be eligible for certain program benefits if you sell your home too soon
  • You’ll have a limited number of loan types from which to choose
  • You may have to pay for recapture taxes in exchange for some of the benefits you receive through the program

Thus, if it’s possible, it may be more beneficial to get a traditional loan.

Investing in Wake County, NC Real Estate

Deciding which home loan is right for you can be a confusing and cumbersome process. That’s why it’s best to work with an experienced Wake County REALTOR who can answer all of your tough questions.

If you’re interested in purchasing a piece of Wake County real estate, please contact us, The Rachel Kendall Team.

We’ll be happy to assist you by providing expert advice as well as such helpful resources as:

Until next time,

Rachel

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Still Have Questions?

We can help! Contact us and we can answer any of your home buying questions about homes for sale and real estate in the Triangle or its many communities.