| Many
home loan programs have been specifically
created for first time home buyers.
These loans feature low down payments
and approval guidelines that make it
easier to qualify. Some of the more
popular first time homebuyer programs
are listed below. Please fill out our online application
fill out our on-line application and
let us help match your requirements
with a lending program.
Many people dream of owning
a home but the home loan process can
be confusing for many first time home
buyers. Mortgage lenders offer first
time buyers with many home loan options
and assist the buyer in finding the
best home loan for them. First time
home buyer programs can offer lower
interest rates, low down payments, or
reduced taxes.
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First time homebuyers often
experience the most difficulty amounting
a significant down payment and everyone
should have the opportunity to buy a
home. For this reason, the Federal government
has developed two loan programs to assist
homebuyers that have a little or no
down payment. These programs are called
the Federal Housing Administration (FHA)
and the Veteran's Administration (VA).
These programs are not solely intended
for first time home buyers; your home
loan advisor will be able to determine
if you qualify and if so which program
is acceptable for your needs. FHA and
VA loans can be especially advantageous
when combined with a HFA or MCC first
time homebuyer program.
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First time home buyer programs
are designed to help borrowers who may
not have enough money to pay the full
cost of the down payment or the closing
costs on a mortgage. These programs
make obtaining a mortgage more cost
effective. There are even programs specifically
for residents of each state. First time
home buyer programs are available to
those who have not owned a home for
the past three years.
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Community homebuyer programs
reduce the down payment the borrower
must pay to 3%, which must be the borrower's
own funds. The closing costs can be
gift funds, a grant, or seller assistance
up to 3% of sale price. This type of
home loan requires the home buyer to
take a class on home ownership in their
state. Upon completion of the class,
the homebuyer will receive a certificate
that reduces the cash requirement and
expands the qualification ratios. Community
homebuyer programs have been making
it possible for many people to have
the opportunity to buy a home.
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Escrow is a deposit of funds,
a deed or other instrument by one party
for the delivery to another party upon
completion of an event. In simpler terms,
escrow is where the transaction changes
hands and prevents the seller from not
receiving the money from the sale and
prevents the buyer from not receiving
the home that was purchased. Escrow
is important to both buyers and sellers
during the mortgage process.
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A Mortgage Credit Certificate
or MCC is a certificate awarded by your
local government agency authorizing
the home loan borrower to take certain
federal income tax credits. The credits
awarded help to free up funds and make
the monthly home loan payments more
affordable for the homeowner. First
time home buyers are typically the candidates
eligible for an MCC but in special cases
that you may discuss with your home
loan advisor this requirement may be
waived. Income and purchase price requirements
also vary state to state and should
be covered in conversations with your
home loan representative.
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