Tag Archives: First

First Time Home Buyer Programs

It’s a Real Estate Boom for First Time Home Buyers

It’s a Real Estate Boom for First Time Home Buyers

The subprime mortgage real estate fiasco has created a glut of residential real estate in the real estate market. Foreclosures are on the rise and it doesn’t look like the end is in sight for at least another year. Thousands of home owners are losing their homes because adjustable mortgage rates have adjusted upward and caused increases of monthly mortgage payments so high that the affected home owners just can’t make the payments. It is inevitable, under these circumstances that many homes go into foreclosure and banks have to take them back.

While it is unfortunate that many home owners are losing their homes, the opposite and upside effect is that the real estate market is now a boom for the first time home buyer.

Mortgage interest rates are still low and banks and real estate lending institutions have 30-40 year fixed loans for home buyers. With home values in many areas around the country, such as California, plummeting anywhere from 30-50 percent of what they were a year ago, the market is wide open for buyers who have never owed a home and would like to do so now.

Lending institutions and sellers are very motivated now and are readily lending their ears to home buyers saying “lets make a deal” and deal they will. Here are some of the innovative and sensible ways home buyers can now acquire a home of their own when they are armed with some real estate homebuyer education.

1. Use government grants and loans for down payment assistance.

The federal government in 2003 established the American Dream Down Payment Act. This federal law has allocated 0 Million a year since 2003 to assist with arranging down payments for first time home buyers. This is a good indication of just how serious the government is about helping Americans make the American dream of home ownership come true.

Fannie Mae, one of the many federally supported programs for home buyers has programs such as the MyCommunity Fixed Rate Mortgage. This unique program is ideally suited for the first time home buyer. It provides for low down payment, high loan to value with broad flexibility, including nontraditional credit considerations allowing for the buyer to qualify for the loan. It also has special financial options to serve public servant professions such as teachers, police officers, firefighters and health care workers, and people with disabilities.100% financing is available with 30-40 year fixed rates. Check out the details at http://www.efannie.com.

These funds, in addition to other government funding sources, are made available through federal, state and local government agencies that provide down payment assistance to their citizens on a case by case basis.

Every major city and county has one of these programs. One need only exercise a little initiative and these funds can be acquired. Contact your local housing authority, city managers office or county administration department to find out about them and how to apply.

2. Use non-profit agency down payment assistance

Another little known, but long existing opportunity for first time home buyers to acquire help with down payment assistance is the numerous numbers of non-profit agencies around the country that provide free down payment assistance to home buyers. The Community Reinvestment Act of 1977, enacted by Congress in 1977 and revised in 1995, requires banks located within identified communities to make loans and reinvest the depositors’ deposits within that community.

For decades now and continuing into the future banks have been making huge amounts of funds available to invest in targeted communities. However, the availability of the funds was not publicized in a significant way and many people did not and still do not know about these funds. Many non-profit agencies became aware that they could help in the community revitalization effort by creating a means whereby the banks could channel the funds through various home assistance programs that non-profits created. The non-profits that specialize in this type of program have grown over the years. Some are very large and are nation wide such as the Nehemiah Corporation – www.nehemiahcorp.org.

They get funding from the banks via the Community Reinvestment Act and other funding sources and then provide for down payment assistance and other housing assistance to persons desiring to own a home.

One of the high points of these programs is that the funding is often times not limited to first time home buyers and certainly is not limited to only low income home buyers. This creates yet another source of down payment assistance for the prospective home buyer. Given the numerous avenues of funding to assist in buying a home and the present market swing in favor of home buyers, buyers are now firmly in the driver’s seat.

First Time Home Buyer Programs

Roy Landers is a California attorney and real estate broker with over twenty years of real investing experience. He is also a licensed real estate broker in the country of Mexico. He teaches real estate investment strategies through seminars and some conducts free home buyer education courses for first time home buyers. For information visit the website at http://www.housingamericans.com or contact roylanders@housingamericans.com

First Time Home Buyer Programs

First Time Home Buyer Loan – FHA Mortgage after Foreclosure – RealEstateMarketingThisWeek.com

realestatemarketingthisweek.com – FHA Guidelines regarding foreclosures and first time home buyers – Part 7 – Ok I was just checking because I thought this was a story about all the mortgage backed securities that were going under. It started at the top and it worked its way down. The reality of it is that people were buying homes, not reading what they were signing, not understanding how it worked and shame on the people who were putting it in front of them, knowing that they didnt know and we all need to take a little responsibility here for this past crisis. It is not just the Wall Street firms; its not just the mortgage companies and banks, the brokers have little in fact to do with it, we didnt create the loan products that people were buying, we were merely disseminating it to the public. I am glad to say I was not a part of any of that. I was able to stay away and do traditional, conventional type financing for people. So luckily I didnt have a lot of clients who got stuck into that nightmare. Speaking of that nightmare, Dan when we talk about the people who have had foreclosures, their lives have been turned around, turned over and they think that there is no where for them to go. One of the nice things about the Federal Housing Administration loan, the FHA loan, thats the first time home buyer type loan, the minimum down payment loan, its only 3 years after you have had a foreclosure that you can qualify to purchase a home again. So it is important if you have …
First Time Home Buyer Programs
Video Rating: 5 / 5

realestatemarketingthisweek.com – Foreclosures the best purchase option for first time home buyers – Part 6 – In the last couple of months, 40% of all the total sales in Maricopa County were foreclosures. 40% of the total market was foreclosures and thats not including short sales, and so normally someone is doing a short sale because their bank is not willing to work with them to do the loan modification. So we could be taking 50% maybe 60% of the supply off the market and as soon as we do that we are going to start to see the bottom of this market. So right now again I think it is a fantastic time to get out there, with government intervention, its a great time to get out there and buy a house. Most people who are out there looking at homes today they have already met with a realtor or they have met with their mortgage planner or both and they are ready to get out there and go. One of the things that is still happening out there is it is still a hot buyers market. The buyer can still go buy a home that fits their needs, their families needs, that they can grow with and the seller in most cases is willing to pretty much do whatever they can as long as they get somewhere close to what they need to yield on the property. They are willing to pay all of your closing costs in almost every case and if there are some repairs that need to be done then they are willing to do those again in almost every case. It has to be of course within reason and it also has to be repairs that …
First Time Home Buyer Programs
Video Rating: 5 / 5

First Time Home Buyer Programs

First Time Home Buyers Seminar to be held on Saturday, August 15th at Wellesley Free Library by Massachusetts Association of Buyer Agents

First Time Home Buyers Seminar to be held on Saturday, August 15th at Wellesley Free Library by Massachusetts Association of Buyer Agents

WELLESLEY, MA…

Massachusetts Association of Buyer Agents, (MABA), a non-profit buyer advocate organization will hold a First Time Home Buyers Seminar on Saturday, August 15th at 9 a.m. at the Wellesley Free Library located at 530 Washington Street, Wellesley.

The seminar is FREE and will be held in the Wakelin II room.  The workshop will be 90 minutes long followed by a question and answer session.  Light refreshments will be served.  First Time Home Buyer certificates will be awarded to all who attend.

MABA’s First Time Home Buyer Seminar will address a variety of topics including First Time Home Buyer programs; the loan process; types of mortgages; hidden fees; home inspections; appraisals; disclosure and more.

First time home buyers as well as home buyers who have not gone through the home purchasing process in a number of years will benefit from this educational seminar which will be led by a Buyer Agent, an attorney, a lender and a home inspector.

“Some financing organizations require a first time home buyer seminar certificate, which we will provide.  Our seminar is designed to arm buyers with the most current information available as they seek to make one of the largest purchases of their lives,” explained John Karcher of MABA.

Due to a provision in the American Recovery and Reinvestment Act of 2009, taxpayers who have not owned a primary residence in at least three years time are considered “first time home buyers” and are eligible for a tax credit of up to 10 percent of a home’s purchase price (maximum ,000).  The Federal Housing Administration (FHA) is allowing first time home buyers to use their tax credit towards a down payment or closing costs on a new home.

For more information about MABA’s First Time Home Buyer Seminar, contact 1-800-935-MABA.

About MABA
The Massachusetts Association of Buyer Agents (MABA) is a unique organization realtors and brokers throughout the state who are committed to protecting home buyers.  Founded in 1991, MABA is a non-profit organization recognized nationwide for its
efforts to educate licensees and consumers about agency issues.  The organization is self-regulated and every member must take a pledge of undivided loyalty to the buyer client.

MABA agents are dedicated to providing quality, fiduciary-level services to home buyers and specialize in trying to save buyers time and money.  MABA members never represent both the buyer and the seller in the same transaction and they never ask a buyer client to waive his/her right to full buyer representation.  Members are serious about due diligence and will inquire about non-disclosed property information.

For more information, visit the website at MassBuyerAgents.com or contact 1-800-935-MABA (6222).

First Time Home Buyer Programs

realestatemarketingthisweek.com – Now is a great time for first time home buyers to get into the real estate market – Part 3 – Back in studio of course Brett Fallon are favorite and one of America’s best financial advisors, and a very good friend of mine for a long time also Dan Havey. Dan, what is the name of the book? The name of the book that I am in the middle of writing is called, Real Estates Future. What it is, is a model that I created with a friend of mine. I didnt believe this was possible when it was first brought to me, but after working on it for six months and doing a lot of research I found that we were actually able to predict, in advance, through a whole series of equations and data, we were actually able to predict in advance the top of the last real estate market here in Phoenix by six months. So were doing a lot more research to see if we can take that to a broader national level and see if we can come close to actually giving people an idea in advance of the top and bottom of the real estate market. And this is not the doom and gloom type stuff, this is reality, this is not media spin or anything, correct? No, this is just numbers. That’s all this comes down to, numbers, a lot of different equations. I am not going to bore people with all the complicated stuff. When I was in college I started out with a degree in computers and mathematics and eventually ended up getting a degree in finance, so Ive got a lot of numbers spinning around in my head. The …
First Time Home Buyer Programs
Video Rating: 5 / 5

First Time Home Buyer Programs

First Time Home Buyers

First Time Home Buyers

The housing slowdown has led us back to the basics.  Homes are more affordable, the primary reason for buying is not to cash in on the equity a year from now and you have to qualify for a loan by coming up with a down payment.  In addition the new Housing Recovery Act provides some assistance for first time buyers. 

 

Buyers who have not owned a home in the last three years are eligible for a tax credit equal to 10 percent of the property purchase price up to a maximum o f,500 for married couples  and ,700 for single tax payers. 

 

Here is how it works:

•      A married couple buying their first home with a purchase price in excess of ,000 and with less than 0,000 in adjusted income will qualify for the maximum benefit of ,500.  The benefit phases out as income increases and is not available for married buyers with adjusted income in excess of 0,000.

 

•      For a single tax payer the maximum benefit is ,700 on purchases above ,000 and with adjusted income less than ,000.  The benefit is reduced to zero with adjusted income in excess of ,000.

 

•      The first time home buyers program is actually a loan which the buyers must repay of 15 years at zero percent interest starting in the second year after the home is purchased.  A buyer who qualified for the maximum ,500 credit would repay it at a rate of 0 per year.

 

•      The program covers homes purchased on or after April 9, 2008 and before July1, 2009.  

 

I think this is a very good program and will help may first time home buyers here in the Sacramento area.  If you want to learn more about the Housing Recovery Act of 2008 check out How the housing rescue bill can help you by Louise Buford over at my website, Jalone.com. Louise is with Partner´s Mortgage and one of the best lenders I have worked with.

First Time Home Buyer Programs

Julie Jalone is an experienced professional Realtor® serving the need of buyers and sellers of residential real estate in the Greater Sacramento area including Sacramento,Placer, El Dorado, and Yuba counties. Some of the communities served by Julie include Sacramento, Roseville, Rocklin, Lincoln and Granite Bay. Julie is a wife and mother living in Rocklin. For more information see her website, www.jalone.com, which includes listings, home search, news, resources for buyers and sellers and her daily weblog, “Keep it Real in Sacramento.”

Buying A House

First House Buying – Home Buying Advice – House Buying Tips

Go to www.NoMoreRentClub.com and learn the #1 secret about how to buy your first house or investment property. We make first house buying easy and provide good home buying advice and house buying tips for first time home buyers. We help renters. Check out our site today!
First Time Home Buyer Programs

Down payment assistance can help determine how much house you can afford. Find out how in this video on buying a home.Expert: Brett Staggs Bio: Brett Staggs has been working in the mortgage industry for the past 6 years. He has worked for a title company, a credit reporting company, and two major banks. Filmmaker: Dana Glover
First Time Home Buyer Programs

First Time Home Buyer Programs

First Time Home Buyer: Get a Free Credit Report

First Time Home Buyer: Get a Free Credit Report

You’ve probably seen the many advertisements that promise, a free credit report. You may have asked yourself, how is it possible for all these companies to offer these attractive free services? The answer is, like a lot of things; there is a catch. The catch, of course, isn’t an obvious one, when it comes time to sign up for a free credit report. What many of these unscrupulous companies do is they get you signed up for a free credit report first. Many consumers are finding out the hard way that they have been taken with things like recurring billing and the like. This is how a large number of companies offering free credit reports make their money.

Fortunately, there is a solution to this. Due to numerous consumer complaints the government has provided a resource that allows you to get a truly free credit report. By going to annualcreditreport dot com you can get a free credit report, thanks to our government. The only drawback, however, is that you can only get one free credit report once a year from each of the three credit reporting bureaus.

So, you may be asking, why is it important first time home buyer to get a free credit report? Your credit report shows a complete history of your credit. In some cases, this is gratifying, and others it is disturbing. Regardless of how great you think your credit is it’s always a good idea to check your credit. With identity theft on the rise, checking your credit regularly is more importance than ever. Getting a free credit report, the right way, doesn’t cost you a thing. What it does for you is allow you to see if there are any issues on your credit history. This can be particularly important for the first time home buyer. If you have unresolved issues looming on your credit report it could negatively affect your credit score, resulting in a higher mortgage rate. And assuming that getting the lowest rate on your mortgage is important, you’ll want to make sure your credit is squeaky clean.

It is not at all uncommon for individuals to find mistakes on their credit report. These mistakes can be cleared up, relatively easily with your creditors. You may have an unresolved bill that’s holding your credit down. Even the smallest of unpaid bills can have a negative affect on your credit. All these things can go unresolved if you’re not on top or credit report. Discovering these issues helps in the process of improving your credit so that you get the lowest interest rate possible on your home loan.

Things are hard enough the first time home buyer. You have to come up with a large down payment. You have two get approved for a loan. You have to cover closing costs. The list goes on. Getting your credit straightened out is one of the easiest ways to get on track for the first time home buyer.

After you make sure you have no credit issues, or you get any unresolved issues straightened out, you’ve taken the all-important first step. There are many first time home buyer programs available. Some allow for lower down payments or lower interest rates when it comes to buying your first home. You can withdraw money from qualified plans early if you’re a first time home buyer. There are even some grants in specific states available. Do some homework and be sure to take advantage of these programs, it can save you substantially. And with the cost of real estate, and just how hard it is to be a first time home buyer, you’ll need every advantage you can get.

First Time Home Buyer Programs

If you’re a First Time Home Buyer looking to buy your first home you can visit the site for more details. For more on how to get a Free Credit Report you can get more specifics on that as well.

More Home Buyer Programs Articles

First Time Home Buyer Programs

Obama’s First Time Home Buyer Stimulus Plan Helps American’s Live the Dream

Obama’s First Time Home Buyer Stimulus Plan Helps American’s Live the Dream

At some point in his/her life, everyone dreams of owning his/her own home. This will probably be the biggest purchase you every make. You might be a single person, a couple or a family, but you have decided it is time to buy a home. The qualifications for eligibility in the First Time Home Buyer program is that you have not owned a home in the past three years. If this applies to your circumstances, then congress passed the First Time Home Buyer Stimulus Program in 2008 and 2009 just for you.

Like all other large purchases, you need to plan before buying a house. You have to decide on location, do you want it to be near where you work, where your children go to school or are you more concerned with the scenery? Start by looking for your dream home in the area you want. Decide how big you want the house to be, the furniture you have, and the things you want to include in your home. After you have an understanding of what you want, you can start the more serious part of your planning.

Now decide on how much you can spend. There are two parts to this, the down payment and your monthly payments composed of your mortgage and the taxes. This will also help you decide on the type of home you can purchase and where. Now you need to look at your credit history. A good credit history will make it easier to be approved for a mortgage loan.

You can learn more about this stimulus package from your bank or lending institution. These programs were created so the housing market would grow as well as to offer financial help to first time homeowners. Homeowners benefit from lower interest rates, a tax credit and help with the down payment. People who are disabled or who live on a low income might qualify for an even lower interest rate.

The First Time Home Buyer Stimulus Programs, created just to help first time homebuyers, gives them all the incentives needed to enter the housing market.

First Time Home Buyer Programs

For tips and facts about how you can benefit from Obama’s Home Stimulus Plan – or to find out if you qualify, visit our no nonsense home stimulus guide: http://firsttimehomebuyerstimulus.net

First Time Home Buyer Programs

Obama’s Federal Program Bringing Home Loans into Reach of First Time Home Buyers

Obama’s Federal Program Bringing Home Loans into Reach of First Time Home Buyers

Economic weakness threatens the chances of many Americans to become homeowners and so threatens the nation’s ability to thrive as a nation. Keen to help, the federal government offers the First Time Home Buyer Stimulus Package. It targets first time buyers and those who have not owned a home in three or more years.

Purchases under this program are of pre-owned homes and homes in the new construction phase, stimulating demand in the housing market. Whether indirectly, by boosting buys of pre-owned homes, or directly, by boosting housing starts, this gives builders and their crews more work. As for homeowners, they receive help in three ways, with tax credits, assistance with down payments, and with decreased interest rates.

The initial purpose of the stimulus program was to stave off the economic slowdown of which existence became apparent during the financial crisis of 2008. The developing situation demanded reinforcement of these efforts, which came in the form of a more comprehensive plan from the federal government. In particular, the Obama administration believed that the reluctance to spend money came from the fear of losing home ownership. This, along with the collapse of real estate market, convinced to administration to act to stimulate home ownership.

For any purchase made in the year 2009, a homebuyer may qualify for a 10 percent tax credit. This may for up to ,000, with the basis being the gross purchase price. The home owner may claim this credit either the year of purchase or within two years of purchase. This tax credit provides money to the homeowner, which he may decide to save.

Next is a reduction in the down payment. Usually, these are at least ten percent of the home’s price. The government plan is to pay off part of the down payment. Lower down payments make it easier to purchase the home. Furthermore, reducing the down payment reduces the burdens keeping you from placing money in an investment account or from improving the new home. Also, government help may reduce the interest rate on your home loan by reducing the basis points on the interest rate. Qualification for the tax credit requires that a single person’s income not exceed , 000 and that with a partner income not exceed 0,000.

A third way to encourage home purchases is a tax rebate. In this case, the federal government places the rebate on the amount of interest assessed on the loan. This is not related to the tax credit. Under this stimulus program, homeowners may apply for both the credit and the rebate. Landlords, who buy property for income purposes, may qualify for the rebate. Because the landlord’s maintenance expenses go to the upkeep of the rented property, they are eligible for income tax deductions. Hence landlords are eligible for the rebate.

Economic growth is impossible without continuous improvement of the national infrastructure. However, the collapse in the demand for housing hits precisely here. The Obama adminstration intends to rectify this with tax credits, down payment assistance, and interest rate reductions. Under the First Time Home Buyer program, it intends to place buyers in new homes and stimulate economic activity.

First Time Home Buyer Programs

For tips and facts about how you can benefit from Obama’s Home Stimulus Plan – or to find out if you qualify, visit our no nonsense home stimulus guide: http://ObamasStimulusPackage.net

realestatemarketingthisweek.com – 00 tax credit for first time home buyers with low down payment – Part 3 – We have back in the studio today Mr. Dan Havey. Dan and I have worked together in the mortgage industry for about 14 years and we are happy to have him back. He has seen a lot of changes in the market and thanks again for being here. Michael, here is a question I wanted to ask you, there is so much misconception in the marketplace today as far as what is still available for financing. I think a lot of people have this idea that it is impossible to finance a loan or get a mortgage or that you have to be able to put 20% down or have a 720 FICO score. Can you let people know whats really going on out there? Well you know a lot of things have gone away. There are a lot of those old loan programs that were fancy ways to sell money and finance real property and a lot of thats gone. The reality of it is, if a person has a minimal amount of money down, there is absolutely financing through the Federal Housing Administration with 3.5% down. You can buy up to about 8000 with only 3.5% down. Now with Fannie Mae and Freddie Mac, we actually do have a few investors that will allow us to only put 5% down with those and that loan amount maximum is 7000. So there is still plenty of financing for primary residences. Now in regard to looking at investment properties believe it or not there are actually still some stated income loans out there, but the stated income loan is …
First Time Home Buyer Programs
Video Rating: 4 / 5

More Home Buyer Programs Articles

First Time Home Buyer Programs

First Time Home Buyers Help: 3 Tips to Get You into Your Dream Home

First Time Home Buyers Help: 3 Tips to Get You into Your Dream Home

Buying your first home is likely the largest single purchase you have ever considered, which is why first time home buyers help is necessary. Because of the cost and significance, it is important to understand all of the details surrounding the potential purchase. From finding a realtor or builder to choosing the best mortgage to coming up with the funds necessary to make the purchase, the process may take some research and work on your part, but the result is owning your first home—one of the most important and rewarding investments of your lifetime.

Below are three tips to take you from dreaming about your first home to experiencing the reality of your first home purchase:

1.    Determine if you qualify for special loans or grants. First time home buyers have the unique opportunity to benefit from special programs and incentives, such as significant tax credits, low-interest-rate loans and event government grants. Whether you are able to find a program that cushions your monthly mortgage payment or helps you to pay a chunk off the purchase price of a home, it is worth the time and effort to fully research all options. Simple Internet research may help you to learn more about the opportunities available to you, or you can call a trusted mortgage consultant who specializes in first time home buyer programs.

2.    To buy or to build? For some first time home buyers, building is a great option. Now more than ever, builders and construction companies understand that customers need a great value if they are going to build. Rather than searching for months and months for that perfect house, consider meeting with a new home builder to determine if a custom townhome or home is right for your housing goals and budget. Imagine the excitement of choosing the features and design of your very own home!

3.    Organize your finances. Making sure your bills and finances are in order helps you to be ready to provide the paperwork necessary to close the sale on your new home. If you have been unorganized in the past, now is the time to get a grip on the mass of bills, files and paperwork stuffed into the file cabinet. The last thing you want is to be ready to move forward on the purchase of the home of your dreams, only to find your financial records are a mess and you have to get it together before you can take the next step.  

As a first time home buyer, this is a special time in your life—a milestone that can be a great moment to remember for years to come. However, it is important to go into the process of purchasing or building a home with thoughtful consideration and research, so you fully understand the process and details involved. Don’t be afraid to ask questions and interview experts, such as mortgage consultants, financial advisors, home builders or even a wise relative to obtain the first time home buyers help you need to make the best decision for your future.

First Time Home Buyer Programs

McGuinn Construction Management has been serving Columbia area customers since 1995. For more information about affordable new home builders and the Custom Home System, visit McGuinn’s website at http://www.mcguinnhomes.com/, or call the office at (803) 917-5583.

www.mcguinnhomes.com

First Time Home Buyer Programs

First Time Home Buyers

First Time Home Buyers

In 1994, we set our sights on a house located in a pleasant, quiet suburban enclave called Bixby Knolls in Long Beach, CA.  Although we could barely afford the home’s 0,000 purchase price – a fortune for us at the time – it was a small, neat, modest home situated in a good neighborhood with appreciation potential.  So, we dove into the home buying market.  It was a perfectly manageable house located in a perfectly acceptable neighborhood.

                                                           

We did not have a clue at the time that home prices would slowly begin to climb and climb and climb thanks to an extended period of historically low interest rates. Low interest rates spurred consumer demand, which soon grew to overwhelming consumer demand for homes to call their own.  Consequently, home prices reached stratospheric levels in our neighborhood as well as in most major metropolitan markets (Texas, Oklahoma, the Dakotas and a few other affordable markets being the exception). 

Ten years later, in the middle of April 2004, a devastatingly tragic electrical fire took the lives of our beloved Italian Greyhounds, Ben and Rusty.  Although we rebuilt our home better than it was before, it was still a sad time for us; we ultimately sold our first, “first home”.  The offers made for our modest 1,600 square foot home were obscene – obscene amounts, that is.  It was undeniably the most profitable yet most heartbreaking investment of our lives.

In retrospect, recalling the loan application process and qualifying for the mortgage in order to buy our perfect little house, well, we recollect that process was NOT so perfect. 

In 1994, when we were struggling to qualify for the mortgage, we were not aware of available first time home buyer programs created for folks of low to moderate income.

Furthermore, our loan officer did not introduce us to these options, either because he was as clueless as we were about the existence of such programs or, the bank with whom he was employed at the time elected not to participate in specialty programs for first time home buyers. 

Neither we nor our loan officer had any idea the city of Long Beach, county of Los Angeles and yes, even the State of California all had available specialty loan programs designed specifically for folks like us: first time home buyers, short on cash for a 20%, 10% or even 5% down payment, not to mention funds to cover closing costs. 

We were wholly unfamiliar with mortgage credit certificate programs, below market interest rate programs, mortgage revenue bond programs, and we would have given our left arm for help with no-strings-attached gift money and forgivable grant money provided through city, county and state housing agencies. 

If we only knew . . . the home buying process would have been so much easier and much less stressful.   Driving our decision to buy a home we could barely afford was  exacerbated by our landlord’s demand we vacate the house, which was once rented by my husband and his former wife (the landlord’s daughter), within 30 days.  Great – no pressure there. . .

Fortunately, with the generous help of parents and with a loan borrowed from our 401K, we were finally able to produce a minimal down payment.   Our motivated home seller, an 80 year old retiree who wanted to move closer to her daughter in another town, helped us pay some of our closing costs through seller concessions. Then after all that, we SOMEHOW managed to scrape up sufficient funds to substantiate cash reserves to satisfy our lender and cover our personal moving expenses after escrow closed. 

Did we consider buying new furnishings and/or major appliances to update our 50 year old new house?  Fuggedaboutit!  And THEN we had to take into account recurring costs associated with debt servicing the new mortgage and maintaining our new home like water, electricity, property taxes, etc. 

If your borrowers are anything like we were back in the day, the sticker shock associated with a new home purchase and maintenance costs can discourage even the most motivated buyers.

Timely solutions to the above-described challenges may not be easily found or forthcoming at all.  Notwithstanding the charity of parents, other relatives and/or through the liquidation of assets in order to meet most lenders’ minimum mandatory requirements for down payment and cash reserves, a substantial number of  first time home buying hopefuls will consequently shelve their Dream of Homeownership.

This is the sad, sad shelf upon which dust will gather, accumulate and ultimately completely obscure the light-filled Dream of Home Ownership which once burned brightly in their mind’s eye – snuffed out, extinguished. 

What you must know is it doesn’t have to end this way.

Be the Hero.  With new information provided through the OFFICIAL LOAN OFFICER GUIDE,   solutions to the above-described challenges are placed at your fingertips.

In most real estate markets today, it remains virtually impossible for the average consumer of low to moderate income to qualify for a modestly sized mortgage without benefit of a substantial out-of-pocket investment.  Depending on a variety of qualifying factors, we’re talking a down payment investment equal to  10, 15, 20 or 25% of the home’s sales price plus closing costs (points, title, insurance, etc.). 

Be the Hero.  Be the “Go to Guy” for information about down payment assistance programs and products.

Programs like those that are the focus of the Official Loan Officer Guide will well serve your marginally qualified borrowers and help support the real estate industry overall by providing another way to shore up buyer qualifying and loan viability. 

Be the Hero.  Reserve first time home buyer program funds on behalf of your borrower before your competition does.  When I worked for a major national mortgage bank (a bank  heavily vested in first time home buyer loan programs),  I observed first hand fierce competition between loan officers and competing lenders for the right to secure programs funds on behalf of their constituencies – first time home buyers. 

I observed borrowers anxiously await word from their loan officer for assurances that they too would get their piece of the first time home buyer mortgage assistance pie.  Anything less could, and often did, jeopardize the borrower’s ability to qualify for a mortgage and close escrow on time (if ever).

A growing number of city, county and state housing finance agencies/authorities/corporations are creating new and/or fully funding existing programs to assist first time home buyers with cash money for down payment and closing costs.  Monetary assistance can be quite substantial, ranging in amounts from ,000 to 0,000+ (amounts vary by city, county and state) or calculated as a percentage of the home’s sales price or a percentage of the first mortgage loan amount. 

Be the Hero.  Be the first in line to procure program information, educate your customer and secure funds for your stressed out client base – first time home buyers. 

Please note, programs addressed in the OFFICIAL LOAN OFFICER GUIDE are primarily used exclusively in conjunction with purchase money first mortgage loans with 30 year fixed loan terms.   Alt-A, sub-prime and non-traditional hybrid loan first mortgage loans types are strictly prohibited.

Bottom line?  There is hope, and it begins with this quick read, bare-bones approach to assisting the neophyte loan officer and veteran loan officer to better understand how such first time home buyer programs work in tandem with step-by-step processes and procedures and ways to pinpoint available programs in your borrower’s selected subject property city, town and/or surrounds.   Some first time home buyers may elect to buy (or not to buy) in a particular city or county based on the availability (or lack thereof) of first time home buyer programs. 

The OFFICIAL LOAN OFFICER GUIDE provides a fast track to inside knowledge regarding useful specialty programs created specifically to assist first time home buyers of low to moderate income on a NATIONWIDE scale.

There is a dearth of information available to educate loan officers on a nationwide scale about the many beneficial programs that are the focus of this guide.  As I complete the writing of my first book on this topic, it is my hope, desire and intention that the OFFICIAL LOAN OFFICER GUIDE: Below Market Interest Rate Programs – Down Payment Assistance Programs, First Edition, will serve to educate and empower you to help cash strapped first time home buyers produce tangible results in the form of new, affordable housing that falls within the budgetary means of all eligible citizens nationwide.

To you guys and gals in the mortgage finance trenches, you are amazing!  This book was written for you.  May you make many a first time home buyer and real estate agent happy, satisified clients by your effective utilization of the information contained within this book.

  

Best of luck to you all and happy down payment assistance hunting!

Esperanza J. Creeger

Author

www.FTHBGuru.com

First Time Home Buyer Programs

Esperanza Creeger currently resides in Dallas, TX. A mortgage industry veteran for 21 years and counting, Esperanza is currently working on her manuscript for film \”An Akashic Tale\”. Inquiries: Contact Ecreeger@hotmail.com or (469) 438-9659. Esperanza’s book “First Time Home Buyers’ Guide” is available for purchase at FTHBGuru.com 96 pages

Related Home Buyer Programs Articles