Are There Special Mortgages For First Time Buyers?
Yes. Lenders now offer several affordable mortgage options which can help first-time homebuyers overcome obstacles that made purchasing a home difficult in the past.
Lenders may now be able to help borrowers who don't have a lot of money saved for the down payment and closing costs, have no or a poor credit history, have quite a bit of long-term debt, or have experienced income irregularities.
Can I Borrow An Earnest Money Deposit?
Real estate professionals suggest that none of the earnest money deposit is from borrowed funds as this amounts documents the buyer's intent and the ability to pay for the purchase.
Any borrowed amounts show up in loan application documents, bank statements and possible credit reports.
How Do I Find Down Payment Assistance?
Ask around. Ask Realtors, lenders and friends. Many counties and cities have 1st time homebuyer programs. An online resource is http://downpaymentresource.com/.
How does the FHA help buyers purchase homes?
The FHA works to make homeownership a possibility for more Americans. With the FHA, you don't need perfect credit or a high-paying job to qualify for a loan.
The FHA also makes loans more accessible by requiring smaller down payments than conventional loans. In fact, an FHA down payment could be as little as a few months rent. And your monthly payments may not be much more than rent.
How much down payment money is required when buying a home?
The mortgage menu is very diverse, and exploring the loan options takes time. What is good for one borrower, is not the best for another. Housing counselors are a good source of information.
I am going to buy my first home, is there downpayment assistance available?"
Many federal, state and local agencies administer programs to assist people who need help buying a home.
Some of these are loan programs such as the HUD Teacher Next Door program which encourages homeownership in low-to-moderate-income areas. Others provide assistance with down payments or with building a home. Lenders also have a variety of programs in their community involvements.
What are seller concessions when buying a home?
When you purchase a home, make sure to talk to your lender and Realtor about the possibility of seller's concessions. Simply put, these concessions are a set dollar amount or percentage of the purchase price that a seller agrees to contribute to you, the buyer, towards your closing costs which will lower the amount you need to close on the property.
What is the size of down payment for FHA loans?
You must have a down payment of at least 3% of the purchase price of the home. Most affordable loan programs offered by private lenders require between a 3%-5% down payment, with a minimum of 3% coming directly from the borrower's own funds.
Who qualifies for FHA loans?
Anyone who meets the credit requirements, can afford the mortgage payments and cash investment, and who plans to use the mortgaged property as a primary residence may apply for an FHA-insured loan.