FHA Loans Tips
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First Time Homeowner Loans Tip
First time homeowner loans are available through a variety of mortgage lenders such as banks and credit unions. There are loans that are specifically designed for first time homeowners. These loans typically require a low down payment and may require a mortgage education class. A mortgage education class informs a borrower of the different types of loans that are available. The class also educates a borrower of the maximum loan that they may be able to afford and what criterion mortgage lenders look at when approving first time homeowner loans.
There are also HUD loans that are available to first time homeowners. This type of loan is made possible through a government program. In order to initiate a HUD loan, the borrower would contact a mortgage lender and express interest in this type of loan. A HUD loan has specific requirements such as maximum borrower income amount and maximum home loan amount.
There are some states, counties and towns that have special programs available for first time homeowner loans. These programs can vary widely from loan education classes to down payment assistance. These types of programs encourage home ownership and responsible borrowing. The program requirements can vary widely but typically have requirements for maximum income, maximum home loan and sometimes have a minimum time that the borrower must reside in the home.
FHA Loans
If you're a first time home buyer, you probably need a loan that is a little more relaxed on credit and requires a minimal down payment. If this is the case, you'll probably want to look at the FHA government first time buyers loan option. FHA loans offer a low interest rate on fixed and adjustable loans, and are easier to qualify for than others. FHA allows for a 3.5% down payment, which is convenient for most people looking for a "starter" home. Also, if a person has not established credit, and has a 0 score without any derogatory items on his credit report, he can apply for FHA financing. All that is required are three alternative credit tradelines, or other bills that have been paid on time for at least a one year period. Examples are rent, car insurance, and utility bills. Also, If you've had a few credit issues, but your score is at least 600, you can apply for financing and often get approved. Another reassuring feature of FHA loans are that the loan can't be granted on a home that has anything more than minor cosmetic defects, so you know that there won't be unpleasant surprises post-closing.
| Guru Spotlight |
| Lynne Christen |
