Being a first-time homebuyer is exciting, but there’s a lot about buying a house you may not know. For example, odds are you’ll need to apply for a mortgage. Where should you go? What’s needed? The following are some of the questions you might have about first-time homebuyer programs:
What are first-time homebuyer programs?
There are many different home-buyer programs established to encourage people to become first-time homebuyers. Look into the FHA and USDA loan programs and the HomePath Ready Buyer™ Program. There are also loans available to homebuyers with specific qualifications, such as the VA loan program and the Good Neighbor Next Door buyer aid program.
Why consider a first-time homebuyer program?
First-time homebuyers may not have a lot of credit history. Many of these loan programs are easier to qualify for if you don’t have a high credit score.
Some first-time homebuyers haven’t had a chance to save a lot of money for a down payment, either. First-time homebuyer programs tend to require much smaller down payments and lower credit scores than conventional loans. Some even provide closing costs assistance.
What are the requirements for a first-time homebuyer program?
Many of the loan program requirements vary, so be sure to compare. For example, an FHA loan typically requires a credit score of 580 and a 3.5% down payment. Or, you might qualify with a score of 500 but will have to put 10% down.
For more in-depth advice on first-time homebuyer programs, be sure to contact us at Randy Lindsay today.