Posted on: 07th Apr, 2007 11:18 am
First Time Homebuyer Programs:
Let me begin by conceding that in many cases, the term has been used to simply market loan programs without there being anything special for someone who is actually buying their first home. That being said, let me help you with some suggestions:
1) Sources of money for down-payment and/or closing costs for FTHB.
The first thing is that there are sources of funds for you that can be used with any loan program or with a specific list of loan programs. State, local and federal government sources exist for these funds and most have a household income maximum. If you make too much money, you may not qualify. A local real estate agent and/or mortgage loan officer will know about the local or state resources. Search for "down payment grant or gift" to use the internet.
2) Banks are required by the federal government to lend money to moderate and low income borrowers.
This means that there are specific loan programs through banks that provide really attractive terms for home buyers as long as they don't earn too much income. This tends to fit MOSTLY first timers but it is not exclusive to them. Call your bank or a mortgage loan officer in a bank for more information.
3) First Time Homebuyer Education classes and providers
This is easy to do an internet search for providers in your area. Call them and ask them what lenders they know of and/or endorse for loan programs catering to or specific to first-time homebuyers.
These 3 sources should give you a head start and a good overview of your best options.
good luck.
Let me begin by conceding that in many cases, the term has been used to simply market loan programs without there being anything special for someone who is actually buying their first home. That being said, let me help you with some suggestions:
1) Sources of money for down-payment and/or closing costs for FTHB.
The first thing is that there are sources of funds for you that can be used with any loan program or with a specific list of loan programs. State, local and federal government sources exist for these funds and most have a household income maximum. If you make too much money, you may not qualify. A local real estate agent and/or mortgage loan officer will know about the local or state resources. Search for "down payment grant or gift" to use the internet.
2) Banks are required by the federal government to lend money to moderate and low income borrowers.
This means that there are specific loan programs through banks that provide really attractive terms for home buyers as long as they don't earn too much income. This tends to fit MOSTLY first timers but it is not exclusive to them. Call your bank or a mortgage loan officer in a bank for more information.
3) First Time Homebuyer Education classes and providers
This is easy to do an internet search for providers in your area. Call them and ask them what lenders they know of and/or endorse for loan programs catering to or specific to first-time homebuyers.
These 3 sources should give you a head start and a good overview of your best options.
good luck.
That's a interesting topic that you've started Ken. First time buyers do have a lot of queries and I think they will surely get some help by reading through your post.
Just to add to the information that you have provided, I feel home buyer education is extremely important. It increases your awareness on the variety of options that you can look forward to and educates you on the home buying process so that you stay can away from frauds and scams.
James
Just to add to the information that you have provided, I feel home buyer education is extremely important. It increases your awareness on the variety of options that you can look forward to and educates you on the home buying process so that you stay can away from frauds and scams.
James
FTHBs are quite vulnerable lot, as most of them do not know anything or rather to say know very less about the kind of mortgage that would be suitable for them. They also need to know if they will be able to continue making the payments over the years when rates change as happens with many ARMs.
Which type of mortgage will be suitable for them? How much house they can afford? How long they plan to stay before selling the house? All these points need to be answered by FTHBs themselves before selecting a mortgage. Then only they can be sure they do not suffer in future.
Which type of mortgage will be suitable for them? How much house they can afford? How long they plan to stay before selling the house? All these points need to be answered by FTHBs themselves before selecting a mortgage. Then only they can be sure they do not suffer in future.
Hi ken,
I am looking towards buying home for the first time. I am not sure as to how the first time buyer program works. If I have poor credit (500) am I still eligible for the first time buyer program or is that too low to get mortgage?
I am looking towards buying home for the first time. I am not sure as to how the first time buyer program works. If I have poor credit (500) am I still eligible for the first time buyer program or is that too low to get mortgage?
That's a low score indeed. I think you should wait for some time and try to improve your credit profile rather than just going for a home loan right now. Refer to "http://www.mortgagefit.com/credit-rating/credit-repair.html" to know how to improve your score.
Larry,
Not all loan programs are credit score based. The FHA program, most notably, is concerned with your recent payment history and doesn't have a credit score requirement.
That being said, I have to agree with Mac_7 in general that with a very low score it may be best if you get some items cleared up. However, sometimes people have low scores because they have little to no credit other than a couple of small, old collections.
If you would like to talk more specifically about your situation PM or e-mail me.
Not all loan programs are credit score based. The FHA program, most notably, is concerned with your recent payment history and doesn't have a credit score requirement.
That being said, I have to agree with Mac_7 in general that with a very low score it may be best if you get some items cleared up. However, sometimes people have low scores because they have little to no credit other than a couple of small, old collections.
If you would like to talk more specifically about your situation PM or e-mail me.
