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​
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.

You Might Also Like:

Powered by Blogger.