We make buying your first home a smooth process especially when finding a loan that works best for you. Securing a mortgage can be a very stressful process but we are here to ensure you can focus on your dream home and we deal with the financials. Before securing a loan its good to have some background information on your options. Below are listed some loans that first time home buyers tends to benefit from the most.
These loans are available to homebuyers who meet the low-to-average income requirement and are looking to buy a home in rural areas. This loan program is enforced under the United States Department of Agriculture (USDA) for rural housing loans. While you may not think you are buying in a rural area, 97% of the US is considered rural so check before you disregard this loan option. These loans require no downpayment and may include below market value interest rates.
The Federal Housing Authority (FHA) loans are directed at first-time homebuyers. These loans include low interest rates directed at buyers that have lower credit scores and include low closing costs when the time comes to sell the home. In addition to the FHA loan, the 203k rehabilitation loan is directed at buyers looking to purchase a fixer upper by rolling repair costs into the mortgage.
Veteran affairs loans are directed at veterans and active service members of the US military and provide low interest loans with no down payment and no mortgage insurance. The following qualification are required to access this loan program (must complete minimum term of service as an ….. active-duty serviceperson, member of the National Guard, reservist, surviving spouse of a veteran, US military cadet, Coast Guard Academy cadet, Air Force cadet, US Naval Academy midshipman, or officer at the National Oceanic & Atmospheric Administration.)
Conventional Home Loan
Although no directed at first time home buyers, this loan has many benefits including, down payments as low as three percent, no private mortgage insurance (PMI) with a 20 percent down payment, lower-cost PMI with less than 20 percent down, ability to cancel PMI after loan is paid down, down payment amount may come from a gift, no upfront “funding fee,” and lower interest rates than government-backed loans.
This process may seem overwhelming but please reach out and let me help you find the right loan that meets your personal needs!