For the typical Pennsylvania first time home buyer, coming up with the down payment and closing costs is the most difficult hurdle to overcome in the quest to be a property owner. After paying monthly rent, there is often very little funds leftover to save for the up front costs associated with buying your first property.
That’s where state and local assistance programs can really make a difference. And while all men have been created equal, first time home buyer programs certainly haven’t been! Some states are far, far more generous than others. At the top of the list for the most generous state is: Pennsylvania.
Each of the 50 states has some sort of program to help homebuyers, especially those making their first purchase, according to mortgage Web site HSH.com, which recently compiled data and ranked the states.
The most generous state of all is Pennsylvania, where homebuyers have access to no fewer than 11 programs, including ones for first-time and repeat buyers, and even assistance for homeowners looking to make improvements. The Keystone state was followed by Wyoming and New York.
While not necessarily new, state homebuyer assistance programs may be more critical than ever. That’s because seven years after the 2008-2009 financial crises, lingering after-effects like depleted savings and an expensive rental market have made it particularly hard for 20- and 30-somethings to buy homes.
Traditionally, getting a mortgage in the strictly private market requires a down payment of 20%. Yet the Federal Housing Administration makes it possible to buy homes with as little as 3.5% down, with the caveat being that you will be required to pay mortgage insurance. The assistance offered by states — often in the form of grants or no-interest loans — can help get you to the finish line.
>> read the full article at time.com