There are many available loan programs for both first time and recurring buyers alike. The challenge for most, is gaining access to these programs, and dealing with an individual that is very familiar with them. All to often the buyer is shown the loan programs that only that bank participates in or that the broker has access to. Or even worse the program that the bank or broker make the most money off of. This is called steering and it is illegal. My buyers have access to all available government loan programs and will be shown all their options and have their questions answered thoroughly. Here is a brief description of some of the most popular loan programs currently available to most all 1st time home buyers.
FHA is the most common loan program offered to first time home buyers. It is the most accessible program to both retail banks and brokers alike. It offers a low 3.5% down payment with up to 6% of the purchase price sellers concessions allowed. Low credit scores are allowed and your interest rate and loan is government backed and insured. The home must be in pretty much " turn key condition" for this loan to be backed by FHA so no "fixer uppers" allowed. A percentage of the down payment can be gift funds from a family member as well. More info this program can be found by CLICKING HERE.
The FHA 203K loan is exactly like the regular FHA loans as far as the qualifying process goes. It utilizes the same 3.5% down payment and low credit score requirements. The difference here is that this loan allows you to finance needed repairs into the new loan amount! You can even use this to finance things into to the new loan that are not needed. Maybe you just want new flooring, or would like to updated the bathrooms.. With this loan you can do just that. Very FEW lenders participate in this program. Fewer still, understand the program and how it works. Most realtors are either not familiar with it or are afraid of it due hear say or a previous bad experience. You see this program has been around for a while, but only recently has there been a better and easier version released. It is called the FHA 203k streamline and although I can do both the old 203k standard program and the new streamline 203k which is what I am referring to here. For a complete site dedicated to this exciting program CLICK HERE!
USDA Home Loans
The United States Department of Agriculture does home loans? Yes they do! They are EXTREEMELY popular, but again very few banks participate in them. This program requires ZERO down payment. Yes that's right zero down! What is even better is that the monthly PMI payment that is required on most government loans is a small fraction of what it is for say FHA loans. This means a lower mortgage payment. For a site completely dedicated to this program CLICK HERE!
Veterans Association Loans
The Veterans Association provides government insured home loans to its veterans. These loan programs are EXCELLENT. They offer ZERO down payment, no monthly PMI, low closing costs, and even further discounts for disabled veterans. This program is widely available by most banks, but is not shown to very many buyers as an option due to the perceived difficulty, amount of paper work, and lack of profitability. This is such a shame because it is not a hard loan to perform and is a benefit our veterans have earned. I am proud to offer each and veteran that is interested in buying a home this loan program. I am also a certified military housing counselor with USA Cares for veterans association home loans. I will make this home process seamless for the veteran from obtaining your certificate of eligibility to navigating the paperwork and all the way to the closing table! For even more information on this loan program CLICK HERE.
Other Loan Programs
There are many more exciting loan programs available to most all first time home buyers and home buyers in general. The pre-approval is still the first step in determining what is available to you personally. There are down payment assistance programs, grant programs and alternative sources for financing. It all starts with a pre-approval. For more information on some other loan programs available CLICK HERE.