Buying a home is part of the 'American dream,' fed to citizens from a young age. Young people are taught to value a good education and hard work, so they'll be able to afford a nice home with a white-picket fence or landscaping of their choice.

However, new generations are finding the old 'dream' of prior generations is a bit hard to attain, given the 'Great Recession' and instability of job market. Luckily, American homebuyers receive financial aid from a variety of sources.

Veteran's Affairs

The VA aids those who have served time in the armed forces. Helping people who are currently active, were honorably discharged, and amid other veteran circumstances. Veterans deeply appreciate the help of the VA. In some cases, no money down is needed and veterans can finance up to 100% of the monies needed to make a home purchase.

It's assumed that some sellers are reluctant to work with the VA because papers and ironing out all the details takes time, but seek a VA office in your specific area.

HUD and FHA

The Department of Housing and Urban Development as well as the Federal Housing Administration helps Americans in need, facilitating the act of finding and securing housing. The FHA is attractive to a number of parties who qualify; typically, buyers place about 20% toward a down payment, which is a lot of money for a recent college graduate or young couple to have, but those working with the FHA may pay as low as 3% down.

In addition, the HUD and FHA offers other derivations of help. For example, homeowners, over the age of 62, can turn equity into liquid cash. Moreover, there are programs for those purchasing mobile homes or houses with implemented solar panels.

Fannie Mae and Freddie Mac

These two lending institutions provide nontraditional loans to a variety of people who qualify. For example, 100 percent financing may be offered to those who are hovering at the HUD median line or just below it. In addition, renovation programs offer loans to homeowners who would like to improve their interior and exteriors, and in turn, raise the property value of their surrounding community.

Additionally, those who purchase new land as well as the needs to construct a new home may be able to combine the two purchases into one manageable loan. One may also discuss possible alternatives to explore with chosen real estate agents.

State and Local

American Two story single family home (PD)State and local buying agents help potential homeowners secure the means to make an initial payment and subsequent payments. Those interested in alternative lending opportunities need to seek literature depending on location as well as reach out to local government offices for better direction.

Those thinking about buying a home, but a bit hesitant due to the 'Great Recession,' associated job markets and income opportunities, have choices provided by the government and alternative programs. Those who have previously undergone bankruptcy, spent years in the armed forces, or find themselves turned away from traditional means can seek solace in choices supplied by their Uncle Sam. Before making a financial mistake, explore your alternatives.

By Robert Groleau

Robert flourishes in his career in real estate. From buying to selling, he loves writing about his insights into today's housing market for the everyday person.

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