The first time home buyer Wyoming market is wide open for all kinds of borrowers from the low credit family to the no credit bachelor. The state actually has a great deal of programs that are specifically geared to first time home buyers. Here is a list of major incentives.
What is a first time home buyer?
It is very important to note that the real estate industry defines a first time home buyer differently from the layman. First time home buyers may have actually owned a home before, but as long as a person has not owned a home as a principal residence within the past three years, that person is considered a first timer.
Does Wyoming work with federal government sponsored entities (GSEs)?
The Wyoming Community Development Authority (WCDA) is the major Wyoming state agency that federal agencies use to disperse funds. Through the WCDA, subsidized loans are available through the Federal Housing Administration (FHA), the United States Department of Veterans Affairs (VA), and the United States Department of Agriculture Rural Development Guaranteed (RD) program.
In order to be eligible for many of the WCDA programs, you must be eligible for one or more of the following federal programs: the FHA, the VA, or the RD.
What are the terms of the FHA loan?
The FHA loan is a low down payment option for first time home buyers in Wyoming, meaning that buyers will not be responsible for the usual 20 percent of the home value upfront. Many FHA loans require only 3.5 percent, and some Wyoming buyers may be able to qualify for a no down payment mortgage. The down payment can also be a gift from an outside entity, a financial tactic that is usually not allowed. Sellers can pay up to six percent of the total home value as the closing costs on behalf of the buyer as well. Finally, there is only a 620 credit score required for eligibility.
Eligible properties include unattached single family homes, FHA approved condos, and multi unit properties up to four units. In addition, the FHA has a kiddie condo option available.
What are the terms of the VA loan?
The VA has perhaps the most advantageous terms, but they are only available to military veterans, their spouses, and reservists who serve at least six years. The VA offers zero down payment loans with no extra private mortgage insurance (PMI) payment.
What are the terms of the USDA loan?
The USDA loan has many of the same criteria as the FHA loan other than the 640 minimum credit score requirement and the requirement that the property be geographically eligible. Most of Wyoming is eligible, and most of the opportunity is in smaller towns such as Jackson Hole and James Town.
What is the Wyoming First Time Homebuyer Program?
If you qualify for an FHA, VA, or RD loan, you may be eligible to obtain benefits from the WCDA First Time Homebuyer Program. There are additional income limits and home purchase price limits that the state places on the borrowers by county. The home that you want must be on less than six acres of property and on a single lot. Wyoming offers special rates to the military under this program as well.
If you are planning on a manufactured home, the state will only sponsor a loan that is also sponsored by the FHA manufactured home program.
What is the Wyoming Home Again program?
The Wyoming Home Again program gives a first time buyer a chance for an even more advantageous interest rate than the First Time Homebuyer Program. The properties that are eligible under this program are all real estate owned (REO). The term is 30 year fixed rate on all properties.
What is the Spruce Up Wyoming Program?
The Spruce Up Wyoming Program I and II are two loan programs that focus on home rehab in much the same way that the FHA 203k loan program accomplishes. In order to qualify for the Level I program, a buyer must meet the requirements of the First Time Homebuyer Program as well as the income and purchase price limits linked to above. The Level II program is not necessarily for first time home buyers.
Overall, the home that is purchased under this program must be in need of at least $15,000 worth of repairs.
What is the Home$tretch Loan Program?
If you cannot get your down payment within your budget with the federal programs, then the Home$tretch Loan Program may be able to help you through a second mortgage on the home up to $10,000. Your total debt to income ratio must be below 41 percent, and you may qualify for zero percent on this mortgage as long as you are able to contribute at least $1500 to the process upfront.
What is the Mortgage Credit Certificate Tax Credit Program?
The Mortgage Credit Certificate Tax Credit Program gives qualified borrowers a credit towards the federal tax liability of buying a home. The calculation comes from a percentage of the mortgage interest that the borrower pays, and the credit may be used over the entire term of the loan period. However, the Mortgage Credit Certificate Tax Credit Program cannot be used at the same time as the First Time Homebuyer Program. If you are buying a home for the first time, keep this in mind and choose the program that saves you the most.
2 Point Highlight
Through the WCDA, subsidized loans are available through the Federal Housing Administration (FHA), the United States Department of Veterans Affairs (VA), and the United States Department of Agriculture Rural Development Guaranteed (RD) program.
However, the Mortgage Credit Certificate Tax Credit Program cannot be used at the same time as the First Time Homebuyer Program.
