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What are the options for first time buyer?

Posted on: 08th May, 2007 04:57 am
I'd like to be a first time home buyer and looking for a mortgage that would require no or little down payment. I can at the most spend about $5000 to $10,000 as down payment and that would likely come out to be 2 to 3% of the home prices in my area. I live in VA and have to pay rent currently $1500 a month and my income hardly allows me to save enough for a down payment. Do anyone know of any such mortgages?
If you are looking for a mortgage with little or no down payment, there can be higher costs or interest rate on the loan.
Posted on: 08th May, 2007 05:11 am
Alvin, there are fha loans which require you to make only 3% downpayment, so you need to check if you would be able to qualify as per their income and loan limit criterion.

If the mortgage you are looking for is within the specified fha loan limits and your income also meets the specification then you would be able to avail this type of loan. Let me know how much loan amount you are looking for and which state do you live in so that I can tell you about the loan limits for your state.

Miller
Posted on: 08th May, 2007 01:02 pm
Hi Alvin,

Welcome to Mortgagefit discussion board.

There is also mycommunitymortgage from fannie mae which can have 100 ltv ratio. For more information about this program you can go through this page - http://www.mortgagefit.com/inprocess/mycommunity-program.html

Do let me know if you have any other questions.

Thanks
Blue
Posted on: 08th May, 2007 02:57 pm
Oh Miller, I've already mentioned it is Virginia
Posted on: 09th May, 2007 05:25 am
You can apply for the FHA 203(b) loan which is a fixed rate mortgage quite suitable for first time buyers as it can requires minimum closing costs and down payments. The closing costs can be paid as gift from a relative, non-profit or government agency. Prior to buying you may try to keep cash reserves for the first 6 -12 months.

Thanks.
Posted on: 09th May, 2007 06:13 am
Alvin,

Here's a short list of loan program choices....

1) FHA loan - 3% required from the buyer - state loan limits
2) NACA - first time buyer program with some strings attached
3) ACORN - first time buyer program with income limitations
4) My Community - 100% financing program with reduced mortgage insurance
5) Bank Programs - also income restricted but several banks have great first time homebuyer programs with no downpayment and no PMI

Those are your choices for starters. You should start by talking to a couple of lenders, banks, brokers and remember you are interviewing them. Pick a couple you feel comfortable with after your initial discussions and apply with them all on the same day so they each see the same credit profile and you can get interest rate quotes all from the same day.

good luck.
Posted on: 09th May, 2007 10:34 pm
No down payment and no PMI, is it so? are banks offering such such programs?
Posted on: 11th May, 2007 05:32 am
"Oh Miller, I've already mentioned it is Virginia"

sort of missed it Alvin :)
Posted on: 11th May, 2007 05:06 pm
yes alvin, i have also heard of one bank where it is no pmi and no down, check out Colorado Federal Savings Bank - cofedbank.com/mortgage/application/zero-down/
Posted on: 11th May, 2007 05:18 pm
Hi Alvin,

I looked up the loan limits applicable in VA but as you had not mentioned the county these are some of the overall limits applicable in the state.

The loan limits for one family units in some of the counties is $200,160 while in others it is $261,725 and in high cost areas it is $362,790.

Miller
Posted on: 12th May, 2007 04:40 pm
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