Tag Archives: Home

First Time Home Buyer Programs

Which First Time Home Buyer Programs Are Right for You?

Which First Time Home Buyer Programs Are Right for You?

So, you want to buy a home. I congratulate you. Now, you need to know what first time home buyer programs are right for you. Where do we begin?

Let’s get down to the basics. First you want to have your credit file in order. By this I mean, no collections or late payments in the last 2 years.

Assuming this is the case, you can begin shopping around for some first time home buyer programs. There are plenty out there. But, for the sake of time and space in this article, I’m going to share with you two options. FHA and VA.

Once you get a feel for these two programs, you will have the knowledge to talk the talk and walk the walk. There are others programs however.

FHA FIRST TIME HOME BUYER PROGRAMS

Now, hands down the FHA is one of the best first time home buyer programs. Why? It has relaxed credit standards over the conventional loan and also has a low down payment feature.

First let’s talk about the credit requirements. In the past FHA would let you buy a home without any credit score at all. Now they seem to be requesting a score around 620. This is still lower than a conventional loan which requires 700 and above.

A credit file is not all that hard to build if you do not have one. Talk with a large national lender about this. Look for a loan officer that has years of experience with FHA home loans. He/she can give you some ideas.

When it comes to a down payment, FHA since 1934 has offered this 3% low down payment option. This makes it possible for you, the first time home buyer to get into a home with very little money.

In fact, the down payment can even be a gift from a relative or charity. I’ve written other articles about down payment assistance, which are awesome when you see how they work. You can in effect buy a house with no money down.

FHA loans do have MIP or a mortgage insurance premium of 1.75% of the loan amount. You have to pay this up front at the loan closing. This amount is added onto your original mortgage amount. So it increases your payment by about .55% of the loan amount until you pay off the mortgage.

If you ever go to sell a house that has FHA mortgage insurance on it, or pay off the loan early you may be entitled to a refund of this insurance premium. Check with your lender about this.

VA FIRST TIME HOME BUYER PROGRAMS

Now the VA loan program is even better. However, you must be a veteran to take advantage of these first time home buyer programs.

When it comes to credit, the VA loan works much the same way as the FHA home loan. So I’m not going to spend much time on this. VA loans may allow a little bit lower credit score.

With the VA home loan, the down payment and MIP is a horse of a different color.

VA loans require NO DOWN PAYMENT. Yes they are 100% financing. Again this is a benefit for veterans only.

The mortgage insurance premium is another reason the VA loan is for first time home buyers. They do not have any MIP to be paid. HUD guarantees the loan 100%. However, there is a VA Funding fee which could range from 0-3% of the loan amount. If the veteran is injured in combat and can have this documented by the VA, then it is 0% funding fee.

So unlike the FHA loan which your loan amount and payment increases slightly, with a VA loan the payment amount does not increase, but the loan amount may increase because of the funding fee.

This is the best loan option if you ask me.

Let me tell you a brief story about a VA loan I did several years ago. There was this really nice couple with one child that wanted to buy a home.

They came to me for a mortgage. After talking with them I learned he was a veteran. When I discussed the benefits of a VA loan they got excited.

He was an injured Vet and had the paperwork to prove it. He had been permanently injured in the face because of shrapnel.

So a long story made short, they bought a house for ,000 with no money down and no VA funding fee. If I recall the maximum out of pocket he put into the deal was less than 0.

Now they are buying a home for less than what they were paying in rent. Again, what VA offers is one of the greatest of all first time home buyer programs.

Explore all your options when looking for a mortgage. Ask questions of your loan officer. Be sure to get your education first, then go looking.

First Time Home Buyer Programs

Jeff and Melinda Ragan want to help learn more about first time home buyer programs available and other helpful information on their website, First-Time-Home-Buyer-Solutions.com.

Related Home Buyer Programs Articles

Home Loans

How To Get The Best Home Loan Modification

How To Get The Best Home Loan Modification
Step by Step, detailed Action Plan, anyone can implement to get the Best home loan modification offer from their lender. Includes all the tools, forms, and key information needed to get a home loan modification that is in Your best interest, not the banks

First Time Home Buyer Programs

How To Get The Best Home Loan Modification

Ez Loan Modification Hero — Save Your Home From Foreclosure Now
Learn exactly how to save your home by modifying your loan. A mortgage industry veteran and loan modification expert gives you all of the information, instructions, tools, worksheets, sample forms and sample letters that you need to save your home.

First Time Home Buyer Programs

Ez Loan Modification Hero — Save Your Home From Foreclosure Now

First Time Home Buyer Programs

First Time Home Buyer Programs and Mortgage Refinancing Options

First Time Home Buyer Programs and Mortgage Refinancing Options

Several first time home buyer programs exist to help future homeowners obtain home loan financing. Not all programs are available to everyone and each has unique eligibility requirements. In order to determine which home buying programs are available, buyers can conduct research online or consult with a mortgage adviser.

The most common first time home buyer programs include: HUD homes, FHA loans, VA loans, Fannie Mae financing, and Making Home Affordable; a U.S. government program for mortgage refinancing and loan modification.

First time home buyers can also benefit from the Worker, Homeownership and Business Assistance Act, which provides an 00 tax credit for properties purchased by April 30, 2010. The Recovery Act also extends up to 00 tax credit to borrowers who have lived in their house for at least five years and want to purchase a higher priced home.

The U.S. Department of Housing and Urban Development (HUD) offers a variety of first time home buyer programs. HUD programs vary by state, but most home buying programs involve purchasing HUD homes at significantly reduced prices.

Individuals who work in teaching and public service professions such as law enforcement, firefighters and emergency responders, might qualify for HUDs ‘Good Neighbor Next Door’ program. Good neighbor home purchase incentives include buying houses at up to 50-percent off realty listing prices.

FHA loans are backed by the Federal Housing Administration and provide financing opportunities for first time home buyers with less than perfect credit. Applicants who have filed bankruptcy or possess inconsistent employment sometimes find it easier to obtain FHA financing.

One major benefit of FHA loans is the low down payment requirement of 3-1/2 percent. Down payment money can come from outside sources such as a gift or loan from family or friends. FHA financing is the only home loan program which allows down payment assistance from an outside source.

VA loans are available to veterans and active duty service personnel. The Department of Veterans Affairs offers no money down financing and guarantees up to 25-percent of home loans; making it easier for veterans to obtain a home loan. First time home buyer incentives and mortgage assistance can be found at va.gov.

Fannie Mae presents first time home buying programs and mortgage refinance options. One of the more popular is the Home Path® program which offers an assortment of homes for sale. Fannie Mae homes are foreclosure and deed in lieu properties sold at reduced prices through approved realtors.

Fannie Mae home buying incentives include flexible mortgage terms, no appraisal fees, low down payment requirement, and home loan financing for individuals with bad credit. First time home buyer and mortgage refinance information can be located at FannieMae.com.

First Time Home Buyer Programs

Author and real estate investor, Simon Volkov, offers a comprehensive real estate article library to help home buyers make informed decisions. Topics range from first time home buyer programs to developing real estate investment portfolios. Buyers, sellers, and real estate investors are encouraged to visit www.SimonVolkov.com to learn more about Simon and the services he offers.

realestatemarketingthisweek.com – First Time Home Buyer should use a Mortgage Planning Expert – Part 8 – Credit scores now are a major factor with interest rates. You see the liars up on the internet with interest rates being at 4.625% and all this kind of hocus pocus, its not true. You are never going to qualify for that rate today. They are going to lie to you, once you sign and see the fine print you are going to realize that it is a ridiculous idea to pay that amount of money in fees. Credit scores have to be significantly higher than they used to, but again I have to tell you, its my opinions that a 70% no doc loan with someone who has a 720 or higher credit score I believe is a good loan. I personally believe that at some point it will be brought back. I am not arguing with that, with a good FICO score I can agree with a 20% down for a stated income loan. People are encouraged through our tax system to write off all of their expenses and so often we have small business people who really are making money but because they take advantage of our tax system they are not able to get a loan. They cant qualify based upon their income. In a lot of cases yes, but once again I definitely want to point his out just because someone is self employed and owns a small business and they do write everything off, that does not mean that they will not qualify. They may have been told now that they have to go stated income because of tax returns, but most people, the small business …
First Time Home Buyer Programs
Video Rating: 5 / 5

First Time Home Buyer Programs

First Time Home Buyer Programs

First Time Home Buyer Programs

With the collapse of the Subprime mortgage market, the mortgage landscape has changed dramatically in recent months. Many of the more lenient mortgage programs have been discontinued. How will this effect the demand for first time home buyer loans?


From approximately the year 2000 until the year 2004 interest rates were continually lowered, reaching multi-decade historic lows by late 2004. This historic reduction in interest rates powered a multi-year boom in the real estate market. Real estate prices were rising rapidly with each passing day, and it seemed that everyone wanted to be involved in real estate.


That included lenders, who were happy to gain new business. In the frantic race to make as much profit from real estate as possible, lenders lowered their standards and created new lending requirements that were so lenient it seemed that anyone with a pulse would qualify!


Loose lending standards, historically low interest rates, and rapidly rising real estate values combined to make the perfect formula to attract millions upon millions of people, and create a real estate bubble along the way.


And that is exactly what happened.


And then disaster struck.


In August of 2007, the subprime home loan industry begin to break down. Large investors, monitoring the default rates of mortgage portfolios and concerned about the continuing fall in real estate prices nationwide decided to stop purchasing subprime loans. By late fall of 2007 the entire subprime industry as we knew it had vanished.


For the first time home buyer, as well as seasoned real estate investors, it was easy to take advantage of the lax guidelines offered by these lenders. They had flocked to the real estate market in droves. And then suddenly, the subprime market came to a screeching halt.


With the downfall of the subprime industry, millions of potential home buyers are now searching for alternative mortgage products that will accommodate their financial and credit history.


Does this mean that first time home buyers will no longer qualify for a home loan? No. There are other alternatives besides the subprime mortgage loan.


There are several solutions. Fannie Mae’s American Dream Commitment offers the most exciting, affordable first time home buyer loan solution that we have seen. To quote Fannie Mae, “Many Americans still are being overlooked, underserved, and overcharged in their search for affordable homeownership.” In defining their goals, Fannie Mae strives to “expand access to homeownership for first time home buyers and help expand the minority homeownership percentage with the ultimate goal of closing the homeownership gap entirely.”


This commitment translates into flexible, accommodative, and low cost home financing available to first time home buyers with less than perfect credit and restrictive budgets. But that’s not all. Reading into the guidelines carefully one will discover some amazing and thoughtful criteria. Amongst these guidelines are included a surprising and liberal allowance for “undocumented income”, expanded seller contribution tolerance, and a complete absence of saving and asset reserve requirements. All of these flexible rules make possible the lowest cost, no money down mortgage program available anywhere.


Credit score requirements are now the easiest of all of the first time home buyer loan programs available in the home loan market. The guidelines provide for a score of 620, but with moderate compensating factors lenders may approve loans with scores as low as 600.


In addition to this program, nearly every state offers some form of downpayment help for first time buyers. First home buyers are not completely shut out of the market. There remains ample state and Federal funding for first time home buyer programs.

First Time Home Buyer Programs

J Stromsteen is a small business owner with many years experience in the finance and insurance industry. She writes for the website First Time Home Buyer to provide information for various First Time Home Buyer Programs.

More Home Buyer Programs Articles