First Time Homebuyer Loan
100% financing No Money Down Programs. How do you qualify for first time home buyer loans? Which loan is the best option? Below are some of the Loan Options available. The first step is to fill out the inquiry form and one of our Lenders will call you right away to see which loans you are eligible for. You can buy an existing home, have a new home built or even buy a foreclosed property.
The first step is to get pre-approved for the loan with us so you know what programs you qualify for. Next, you start looking for a home. One of our approved Realtors can help you find a home or you can search online. Once you find the home we process and close the loan. Your total move-in expenses are usually around $1,000.
All the loan programs have the lowest fixed rates so your payment will be very affordable and the rate will never change. It only takes about two days to get you pre-approved. It takes about forty-five days to close and move into the home. If you have additional questions please call us.
Many people have a goal of making the dream of owning their own home a reality. This reality comes to life once a potential buyer realizes just how many first time home buyer loans are now available. There couldn’t be a better time than now to purchase a first time home.
There are several popular first time home buyer loans available. The Conventional Fixed Mortgage loan is a trendy loan where the buyer can put down the small amount of 5 percent with a 30, 20, 15 or 10 year fixed mortgage rate. The rates of interest are sometimes lower than other lower down payment options. If a borrower puts down an amount less than 20 percent on any conventional type of loan, private mortgage payments will probably be required in addition to the monthly mortgage amount. This amount is due during the earlier years of the loan until equity is stacked higher.
Another option for first time home-buyer loans is the USDA Rural Housing Loan. This is one of the last loans which still remains with zero down on the mortgage. The USDA Rural Housing loan has a goal of promoting development in areas which are underdeveloped. How the property looks is one aspect of eligibility.
The Department of Veterans Affairs guarantees VA loans to eligible veterans, surviving spouses, and active military persons. Many VA loans do not require any money down and credit rating isn’t as important when compared to other first time home buyer loans. Most of the time, closing costs are paid by seller or covered by a gift fund. There is no private mortgage insurance necessary.
When borrowing, it is important to know your limit. A USDA Loans Direct lender can tell you the amount you are approved for according to your finances and guide you through the mortgage process.
First Time Buyer Programs:
Down Payment Assistance
The American Dream Down payment Assistance Initiative may also be one of the best home loan programs for any person(s). This assistance program authorizes down payment assistance. In order to be eligible for this program, the buyer must apply on a first come first serve basis and must also be a first time home buyer. A first time home buyer can qualify if he or she hasn’t bought a home within the past three years. The funds from this program can be utilized in purchasing a one to four family housing unit. Any person who qualifies must have an income that doesn’t exceed 80 percent of the median income.
he program offered by TSAHC, this nonprofit organization receives private donations to sell bonds which are tax-exempt in order to fund the housing program. Program related investments are utilized from financial institutions and other foundations. The success rate totally depends on property donations received. TSAHC partners with nonprofit local organizations for housing in redeveloping properties for affordable housing.
The Mortgage Credit Certificate Program has been created by Affordable Housing Corporation for obtaining a home loan. This program provides housing assistance to home buyers. A Mortgage Credit Certificate is a tax credit issued by the federal government to assist with affordable home ownership.
FHA 1st Time Buyer
We are pleased to announce that FHA is available for home buyers! This is a fantastic program that you can take advantage of. A lot of people really like this option when compared with the USDA because the USDA is limited to rural areas only. With the FHA you can buy a home in urban or rural areas so there are a lot more options available when looking for a home.
Here are the Benefits:
You will save thousands of dollars.
Can buy home in urban or rural area
Can buy new home, existing, or have one built brand new
There are several options in finding no money down home loans. The Veteran Affairs, which used to be known as the Veterans Administration), now has a guarantee on obtaining no money down on a mortgage for any qualified veteran. Typically, private lenders are the ones who originate VA loans which are guaranteed. With the VA loan, mortgage insurance is not necessary. A simple funding fee is all the borrower needs to pay and this amount can ultimately be included in the total loan amount.
The fees for VA funding do vary when looking for no money down home loans and this depends if the veteran served in the Reserves, National Guard or the regular military. Whether or not this is the first VA loan the veteran is obtaining is a factor also. Funding fees can be from 2.15 percent to 3.3 percent.
VA mortgage loans are excellent in benefiting active military personnel and eligible veterans. The Department of Veterans Affairs has a guarantee on this loan type and finances up to 100 percent of the total property value thus ensuring easy qualification and low rates.
VA loans offer exceptional mortgage rates with no money down. This loan type is assumable and this means if you ever sell your property, the new loan can take your mortgage over and you do not have to apply for a new loan. This feature is an attribute to most buyers and sets properties apart from others on the market.
Any person who is eligible and has less than average credit can sometimes qualify even though conventional loan approval is less likely. VA mortgages allow the buyer to buy a home with very little pocket expense. Property value up to 100 percent can be financed and the funding fee can be as well. The seller can pay closing fees. Gift funds often cover closing costs also.
Private mortgage insurance is not necessary. Conventional loan borrowers have to pay monthly payments with the exception of whether or not they put down at least 20 percent of the total amount loaned.
If you have already obtained a VA loan, you can qualify for streamlined refinancing. This is simple and requires less time than conventional refinancing. In addition, the expense is much less. Prepayment penalties do not apply with any streamlined refinance loan. Underwriting is also not required.
What is a USDA Rural Housing Loan?
The US Department of Agriculture created a loan available to rural residents who are in need of owning a home while promoting rural development in areas that are underdeveloped. Most USDA loans are financed through the USDA Rural Housing program.
For any person who qualifies for this type of loan, 100 percent financing is offered. The opportunity for this loan is often overlooked as a wonderful opportunity offered to prospective home buyers. For those who do not want to consider a rural area to live in, surprisingly, there are usually other eligible properties nearby. Rural does not always mean remote. In fact, most are very close to metro areas.
To be eligible, the borrower and property are both factors. The property must be within the eligibility requirements of residence. Any borrower applying for a USDA loan must meet all income requirements as there are some people who have an income which exceeds the allowable limit. Employment and proof of being a United States citizen or being a national non-citizen are necessary to apply.
Financing for a USDA loan is a type of mortgage available to that of members of the US military with zero deposit. Occasionally there are programs offering 100 percent financing. Any persons with lower income may find this to be the home loan tailored to personal income needs. Perfect credit is not a factor in approval.
In 2009, the American Recovery and Reinvestment Act set guidelines for this loan which made it more streamlined while opening doors for higher rates of eligibility. It is necessary that any buyer meet the income requirements as well as provide a recent credit report for review. Keep in mind that the guidelines aren’t as strict as in the past.
In summary, it is imperative to know that this loan program varies from state to state but generally falls into any area with at least 20,000 residents. Many smaller suburban communities may qualify. Meeting the program requirements varies from county to county based off of the median average income for the particular area.
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