First Time Home Buyer Loan Options

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Post author:Doug Thaler
Post published:August 3, 2021
Post category:Uncategorized
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One of the biggest hurdles for first-time home buyers is financing their purchase.

Thankfully, there are numerous loan products and down-payment assistance programs designed to help consumers achieve their dream of homeownership. One good source for down-payment assistance programs in your area is the website Down Payment Resource.

A great Q & A for first time home buyers to understand the basics of first time home buying is below.

How To Prepare For Your First Home Loan. Preparing for your first home purchase can be intimidating. It’s important to find the right resources to educate yourself on the home-buying process. Understanding basic financial language will be key in making an inquiry with a lender. Familiarize yourself with your FICO score and the difference between a consumer FICO and risk based or bank FICO. Explore online sites to familiarize you with local area real estate and pricing.

A: FHA loans from the Federal Housing Administration are the federal government’s premier first-time home buyer program. FHA loans require a 3.5 percent down payment and allow borrowers to qualify with a lower credit score and a higher debt-to-income ratio, which compares your minimum monthly debt payments to your gross monthly income. Borrowers can also obtain gift funds from family members to help with the down payment.

In addition, sellers can contribute up to 6 percent of the purchase price toward a borrower’s closing expenses. However, mortgage insurance is required for the life of the loan.

VA loans, which are designed for individuals who have served our country in the armed forces and now certain members of the national guard and their families, are a good option for those who are eligible because buyers can finance 100 percent of the purchase price without requiring mortgage insurance. VA Loans also allow you to request up to 4% in seller assistance towards paying the closing costs.

Freddie Mac’s Home Possible loan program and Fannie Mae’s HomeReady loan program allow for a down payment as low as 3 percent and reduced private mortgage insurance (PMI).

FHA loans FHA loans are “guaranteed” by the Federal Housing Administration. That doesn’t mean you’re guaranteed to be approved. Contact www.CambridgeHomeLoan or go to http://chl.floify.com to apply now.

Fannie Mae HomeReady and Freddie Mac Home Possible loans are great first time home buyer options. HomeReady and Home Possible loans are two types of conventional mortgages that can help you get your foot in the door of home ownership. Just 3% down and a qualifying FICO of just 580 makes this an easy loan to be approved for.

USDA home loans If you’re willing to buy a home in a more rural part of the country, a USDA loan with no money down could be the best option.

VA loans with zero down, low interest rate and great benefits. Veterans number one benefit is the VA home loan. https://www.cambridgehomeloan.com/vahomeloan.