First Time Homebuyer Information & Education

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First Time Homebuyer

First Time Homebuyer - A first time homebuyer can purchase a home and obtain a home loan with zero money down many times. The better your credit is, chances are the better your mortgage interest rate(s) will be.

You may also be able to use a down payment assistance program if you cannot secure 100% financing and have no down payment of your own.

Lenders are constantly coming out with new mortgage programs to help first time home buyers purchase a home. Check with you local mortgage professional to see what programs are available for you.

First time homebuyers who don't have a down payment end up doing an 80/20 and usually on a 2/28 or similar product. It just makes better since because getting one loan or a fixed rate would result in a larger monthly payment.

When you are making an offer on the home you should ask for seller concessions. Many lenders allow seller concessions up 6%. These concessions will cover all the closing costs and will allow you virtually zero out of pocket expenses.

In some states/counties, first time home buyers are entitled to a discount on some of the fees associated with purchasing a home. There is often a discounted transfer tax. You may be required to sign an affidavit stating that you are a first time home buyer. The affidavit will also define what qualifies as a first time home buyer. In some instances you can not have owned any interest in any property ever, in some cases it is if you have not owned any property in the past three years

Buying your first home can be confusing. To help you through this process, you should pick a mortgage professional who will answer all of your questions promptly, professionally and patiently.

First Time Homebuyer Programs - What types of programs are available for first time homebuyers and how do I qualify are a couple of the most common questions asked by first time homebuyers. As a first time homebuyer there are many different programs that will be available to you. Read through the entire page to explore some of your options and email me at if you should have any questions about first time homebuyer programs.

FHA is the most popular first time home buyer program. FHA requires a 3% down payment on your new home. However there are down payment gift programs available that are allowed by FHA. While FHA does not look directly at credit score to issue a loan approval they will expect borrowers to have a clean credit profile that includes timely payments and no outstanding judgments or collections

1st time homebuyer - As a first time homebuyer you should begin the process of buying a home by planning a detailed budget to see how much of a monthly payment that you feel comfortable making. Way too often consumers have no idea as to what an ideal monthly mortgage payment would be and they just use the bank pre-approved loan amount to decide on how expensive of a house they should buy. Remember the bank does not make your mortgage payment each month, you are and they do not know or understand what a comfortable lifestyle is for you. Therefore, you really need to sit down and figure out how you can keep your same lifestyle when you buy a home and this will insure that you are not stretching your income too thin and overextending yourself.

Homebuyer - A homebuyer is a person that buys a home. There are many things that a homebuyer needs to consider when they are in the process of buying a home. The type of mortgage program that you are considering is very important to understand when buying a home. For example, whether you are obtaining a fixed rate mortgage, an adjustable rate mortgage, an interest only mortgage, a 30 year mortgage, etc..., you need to be aware of what type of loan you are getting so that you can understand how the mortgage loan program works and so that you know what to expect with your rate and loan over the course of the life of the loan.

It is recommended that any new home buyer get a mortgage pre approval before starting to shop for a new home. Not only will this make you a serious buyer to sellers but it also gives your Realtor a approved price range to find you a home in.

First Time Homebuyer - Bad Credit - If you are looking to buy a home in todays real estate market and you are a first time homebuyer with bad credit, you will probably have a tough time finding financing. However, there still are options for first time homebuyers with bad credit. Consult a mortgage professional to find out if you can qualify for a mortgage, even with bad credit.

Sub prime mortgages are a great choice for borrowers who have bad credit and are buying a home. FHA is another great option for borrowers with bad credit.A sub prime mortgage has less restrictions then an FHA loan but FHA will have a much lower interest rate. FHA underwriters will qualify a bad credit borrower based on credit profile not just credit score. When it comes to deciding between FHA and sub prime FHA is the best choice if you can qualify. Your mortgage broker will be able to guide you and let you know your best options

First Time Homebuyer - Fair Credit - Consumers with fair credit can buy a home, even as a first time homebuyer. However, generally the lower your credit score is, the more money that will be required from you for a down payment. The opposite is normally true as well, the higher your credit score is, the lower the down payment requirement will be. Some consumers can still qualify for a first time homebuyer loan with no down payment required with fair credit. Therefore, you will need to consult a mortgage broker to see what you qualify for.

When purchasing a home as a first time home buyer with fair credit, be sure to look into programs that are backed by the government such as FHA and My Community mortgages with your mortgage broker or banker. These particular programs have relaxed credit score requirements and can use other compensating factors in lieu of them.

When trying to purchase a home with fair credit, it is important to keep your current credit up to date. The longer the period of time between your last delinquency, the better. Be prepared to write an explanation for any slow pays on your credit report.

If you are a first time homebuyer you can still qualify for a loan with fair credit. There are several government programs available that do not rely solely on your credit score. If possible take steps to improve your credit by disputing credit report errors and paying down your credit balances.

With Fair Credit you can get involved with government programs that subsidize qualified individuals. Ask your broker about CRA's that may be available in your county.

First Time Homebuyer Mortgage - First time homebuyers can often buy homes with zero money down. Buying a home with no money down is often referred to as 100% financing. When you finance 100% of the purchase price, the risk to the lender is increased, and therefore you will normally pay a slightly higher interest rate than if you were to put some money down. However, rates are still very low and many people can still qualify for no money down financing, even as a first time homebuyer.

Homebuyer protection plan - "What is a homebuyer protection plan? How can I tell if my loan has one?"


Information listed above is to be used for educational purposes only and is not guaranteed

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