First Time Home Buyer Programs | How To Qualify First Time Home Buyer
For a first time home buyer, the first question they may ask is how to qualify for first time home buyer programs. Once a borrower starts doing research, they may come to realize that there are so many programs, so many different first time home buyer down payment options, and mortgage companies all having different guidelines. Some mortgage companies have an internal guideline on top of FHA, VA, USDA, and conventional guidelines called an overlay and can make it more difficult to qualify for a loan. Later in the article I will cover some key first time home buyer tips, which should make the pre-approval process go much smoother.
First Time Home Buyer Programs And First Time Home Buyer Down Payment
Reaching out to a experienced Mortgage Loan Originator will help when going through the pros and cons of each first time home buyer program. First time home buyer down payment options vary and some programs do not require a borrower to be first time home buyers.
Grant programs do not require a borrower to be a first time home buyer.
FHA and VA government Loan – 3% or 4% grant with no repayment.
USDA – 3% Grant with no repayment.
4% or 5% down payment assistance conventional loan program.
Power purchase 2% grant, which is 1% minimum borrower investment and 2% power purchase grant with no repayment required.
When choosing a loan program, talking to an experienced Mortgage Loan Originator will help when going through the pros and cons of each loan program. Interest rates and down payment options vary depending on the program.
First Time Home Buyer Tips
Start saving for a down payment.
There are low down payment options, but most loan programs require private mortgage insurance unless a borrower puts 20% down.
Determine how much you can afford before shopping for a mortgage by going through the pre-approval process and getting a pre-approval letter.
Talk to an experienced Mortgage Loan Originator to go over pros and cons of each mortgage program.
Nicholas Auriemma is a Loan Originator at Nationwide Mortgage & Realty, LLC, providing information on mortgages that can often be confusing even to real estate and mortgage professionals. Borrowers can be discouraged because mortgage professionals can be mistaken due to guidelines always changing, the extent of guidelines, their company having an overlay (a stricter guideline), or other lenders not offering a loan program. Call or text Nick anytime at 630-779-8430 or email at firstname.lastname@example.org.
All loans are subject to credit, underwriting and property approval guidelines. Offered loan products may vary by state. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. Terms, conditions and programs are subject to change without notice. Nationwide Mortgage & Realty, LLC is not acting on behalf of or at the direction of HUD/FHA or any government agency. CO: Check license status of your mortgage loan originator atwww.dora.state.co.us/real-estate/index.htm. Also licensed in: FL. VA, and TX: NMLS ID 276777. Illinois Residential Mortgage License | MB. 6760210. WA: Consumer Loan License MB-276777. GA: Georgia Residential Mortgage Licensee 60857