First Time Home Buyer Mortgage Programs Designed Just For You

First Time Home Buyer Mortgage Programs Designed Just For You



First Time Home Buyer? Mortgage Programs Designed Just For You!
So you​ are thinking of​ buying your first home? Congratulations! you​ are taking a​ big step that will help you​ realize the​ dream of​ many as​ well as​ build personal wealth .​
as​ a​ first time home buyer you​ should know that there are several programs available out there to​ help you​ get you​ into the​ house you​ deserve at​ mortgage terms that you​ can afford .​
Before you​ begin your search for your first home be sure you​ understand these programs and work with your mortgage lender to​ take advantage of​ them!
The biggest resource for first time home buyers is​ the​ Federal Housing Administration (FHA) .​
They work by providing private mortgage lenders with guarantees (insurance) against the​ loan that you​ take out with them .​
They help home ownership become a​ reality for many who don't have perfect credit or​ have the​ finances available to​ otherwise afford the​ hefty up-front payment sometimes required to​ buy a​ home .​
It is​ important to​ realize that they are not there to​ help you​ buy a​ home you​ cannot afford; they are there to​ help you​ to​ buy a​ home you​ can afford by providing guarantees and assistance up front .​
It is​ up to​ you​ to​ make sure that you​ are not buying a​ home that you​ cannot afford over the​ life of​ the​ mortgage note .​
Never get yourself into more debt than you​ can handle!
The process of​ applying for an​ FHA loan is​ pretty much the​ same as​ applying for a​ conventional mortgage .​
you​ will need to​ provide verified proof of​ your income over the​ past three years - yet what qualifies as​ income is​ relaxed a​ bit .​
Social security,​ alimony,​ rent paid by other family members and such qualify as​ income under the​ FHA program .​
in​ addition,​ short-term debt doesn't count against you​ (short-term is​ defined as​ being able to​ be paid off in​ less than 10 months).
You are allowed to​ use up to​ 29% of​ your total income towards housing costs and up to​ 41% towards housing expenses and other long-term debt obligations .​
Again,​ it​ is​ up to​ the​ homeowner to​ make sure they can afford the​ home they want to​ buy .​
Just because the​ FHA relaxes the​ restrictions doesn't mean you​ should buy a​ home that you​ have to​ struggle to​ afford each month.
Through the​ FHA they will help you​ get started on​ owning the​ home of​ your dreams - but remember,​ it​ is​ a​ cooperative process .​
you​ should still shop around at​ various mortgage lenders and try and negotiate the​ best rates possible no matter if​ you​ are a​ first time home buyer or​ a​ seasoned pro.
There is​ a​ wealth of​ information available about the​ FHA programs .​
Your mortgage lender should be able to​ provide you​ with extensive information and guide you​ through the​ process .​
you​ can also read up on​ it​ yourself at​ www.fha.gov.
In addition to​ the​ FHA,​ there may be state and local programs available to​ you​ to​ help offset some of​ the​ costs of​ purchasing your first home .​
Check with your lender to​ find out if​ such programs exist.




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