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Basics Intermediate: How to Finance a Home

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1.
Because they are intended to help new homeowners, first-time homebuyer programs do not have restrictions on who can qualify for them.
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False. Even these programs seek to protect themselves from risk. They set out several requirements of those who apply.
2.
One advantage of seller financing for a home is that the interest rate can be negotiated.
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True. The interest rate as well as other features can be negotiated between the two parties.
3.
Government loans for home-buyers are available at which levels of government?
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All of the above. Government loans are available at all levels, though not in every city.
4.
What is the lifetime limit that you may borrow from an individual retirement account (IRA) for a down payment on your first home?
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The lifetime limit is $10,000. Loans from an IRA must be used within 120 days of receiving it.
5.
If you decide to take out a private home loan from a family member, there is never any need to draw up formal contracts for it.
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False. Even family loans benefit from contracts. Contracts protect both parties from adverse circumstances.