If you are interested in buying your first home and you are looking into the programs available to assist you, congratulations! You have taken a huge step toward making one of the most important investments of your life. By doing your homework and learning about the financing options available to you, you’re already making great strides toward a sound investment. Let’s take a closer look at the first time home buyer programs available to you.
First Time Home Buyer (FHA) Loan
Designed to help prospective first time home buyers secure affordable financing, the FHA loan is one of the most attractive mortgage products on the market today. Those who qualify are able to secure financing with a down payment of 3.5%. Far less than the traditional 20% required by conventional mortgage loans, the FHA down payment makes the American Dream attainable for a larger portion of the population. To be eligible you must meet certain requirements surrounding debt to income ratio, monthly income and credit rating. Learn more about the FHA loan program.
Down payment Assistance Programs
The Down Payment Assistance Program (DAP) can help to dramatically reduce the amount of money you must put down to purchase your first home. To be eligible for DAP, first time home buyers must meet certain requirements which include:
- Certain income requirements
- Applicant cannot have owned a home over the past three years
- Other program requirements are determined by your local housing agency
If you or your spouse are active or retired military, you may be eligible for a VA loan. Backed by the Department of Veteran’s Affairs, VA loans require no down payment. In addition, VA loans do not require Private Mortgage Insurance (PMI) which adds up to significant savings over the life of a loan. One of the most enticing mortgage products on the market, if you believe that you may be eligible for a VA loan, contact us today to learn more!
These are just a few of the programs that appeal to first time home buyers. If you would like to learn more about your options, we encourage you to schedule your free consultation today. At Banner Mortgage, we have extensive experience with first time home buyer loans as well VA and other mortgage products. Allow us to put our knowledge and experience to work for you!