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First time home buyers often spend years fantasizing about owning a home before they are able to turn that fantasy into reality. Taking that first step is daunting when you consider you’re locking yourself into a twenty- or thirty-year financial obligation. On the other hand, it’s nice not to be handing money over to a landlord every month for a rental home. There is tremendous pride in not only owning your own home, but also with the knowledge that you’re building equity every month, with each mortgage payment you make.
Today’s housing industry offers a strong buyers market because there are many more available homes for sale than potential purchasers. This means that now is the perfect time to buy your first home.
Conventional Fixed Rate Mortgages – These fixed rate mortgages come in 30, 20, 15 and 10-year terms. Interest rates can be less than you would pay with lower money down mortgages like FHA loans or USDA mortgages. If you put down less than 20% on a conventional fixed rate mortgage, you will usually have to pay for private mortgage insurance (PMI) until you have slowly built up equity over the years.
FHA Loans – There are a variety of fixed and adjustable rate FHA loans available to qualified borrowers. Some of these loans only require 3.5% down payment. In addition, underwriting criteria can be a little less strict than conventional financing. Seller concessions can also be allowed, and are sometimes as much as 6% of the purchase price.
VA Loans – Guaranteed by the Department of Veterans Affairs, these VA mortgages are available to qualified veterans, active duty personnel and qualified surviving spouses. Some VA loans don’t require any money down. In addition, credit requirements can be far less strict compared to other types of mortgages.
Adjustable Rate Mortgages (ARMs) – There are times when an ARM mortgage is the right move for a first time home owner, even though they’re not as popular as fixed rate loans. When the home buyer feels sure they’ll sell their home within 7 years they might want to avail themselves of the introductory low rate found with a 5/1 or 7/1 ARM. Some conventional ARM loans require as low as 5% down, while FHA ARM loans may only require 3.5% down.
Rural Housing Loans – One of the few no-money-down mortgages available today. The USDA Rural Housing Loan Program was set up by the Department of Agriculture in 1949 to help spur development of rural areas. Eligibility depends on the actual location of the home, along with additional factors.
These are just some of the 1st time homebuyer programs available. There has truly never been a better time to buy a home – rates and home prices are at historic lows.
To find out more about 1st time homebuyer programs, call Mortgage Options today: (803) 732-5787 or Toll Free at (866) 456-5511, Or better yet, fill out our fast, easy online loan application.