First Time Home Buyer Programs
There are several new homebuyer programs to say the least. The government home loan division has gone through exhausting efforts to ensure people have access to reasonable financing when buying a home. Here we will look at the programs available for new homebuyers and analyze each one to see which one works best for you.
This program is specially made for people who do not own any real estate. In order to qualify you cannot own any other homes. If you do own a home and you sell that house you will become eligible. You cannot close on a loan with the USDA though until the other home is sold. The main advantage for the new homebuyer is 100% financing; lenient credit requirements and you can have the closing costs rolled into the loan as well. It makes it very attractive for a young person or family that are getting started to buy a home with this program.
Thousands of people who have used this program and get cash back for appliances or upgrades to their new home. The other great thing about this program is that you don't need a credit score to qualify. If you are just getting out of school or don't have a lot of established credit you can qualify for a USDA loan if you have no credit score. There are still requirements that have to be met. Mainly you get cannot have any derogatory credit and must have one year rental history. If you just got out of college we can also count your college if you do not have a two-year work history.
The FHA loan is the most popular loan program in the marketplace for new homebuyers. It offers the most loan programs under one umbrella for new home buyers and has the easiest qualifications. If you had challenges with your credit in the past or do not have the best credit score the FHA loan may be a great fit for you.
If you don't have a lot of money to put down this program is also ideal. With the FHA loan some lenders can lend down to a 600 credit score. This is truly amazing! Most banks or companies will require at least a 620 credit score to make a loan. It is very rare to get a loan with a score below 600.
FHA 600 — 639 credit score 3.5% down
FHA 640 — 800 credit score 100% financing available with some Lenders.
Also with the FHA you can have a home built custom by a builder if you wish. You do not have a to buy an existing home unless you want to. You can also purchase a modular home.
If you have more questions please contact us at 888-979-USDA (8732)
You can also apply now, click on the link below:
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