First Time Home Buyer

Many people dream of owning a home but the home loan process can be confusing for many first time home buyers. First time home buyer programs can offer lower interest rates, low down payments, or reduced taxes.

If you have not owned a home in 3 years you are considered a first time homebuyer and can be eligible for first time homebuyer programs.

Ask your mortgage agent about what first time home buyer programs that are available to you. You might even qualify for a down payment assistance program. There are several down payment assistance programs, that may be able to grant you the money for your down payment. The grant must be agreed upon by both the seller and buyer, and must be in the offer to purchase. The grant money does not need to be paid back, and could help you qualify for your first home!

There are some differences in Buyer's Assistance programs though. Some programs will actually put a lien on the property for a certain period of time. As long as you own the home for that time period the lien will be released and won't have to be paid back. You might want to ask about the program if you are looking at this option to determine if it will fit into your needs

Be sure to get pre qualified by your mortgage professional so that you will know how much you can afford to spend on a home. There are many different first home buyer loan programs available. It's important to consider all aspects of the program, not just the amount of the down payment, to ensure that it will be the best one for you both initially and over the next several years.

Some of the programs require you to be a true first time home buyer. This means that you have never had any interest in any real property, ever, compared to some other programs that simply require a three year window with no ownership.

Many lenders and insurance companies offer a First Time Home Buyers Education course that is free. Some first time home owner loan programs require you to take this course. The company that offers the course will often issue a certificate once the course has been completed.

Many states and local counties offer down payment assistance programs to First Time Home Buyers. To qualify, most such programs require that the FTHB's incomes be within a certain limit. There may also be limits on the property locations and project developments. These programs also have measures in place so assistance recipients cannot profit from selling the homes or refinancing the mortgages to cash in the equities built in the homes within a specified period of time.

If you are a first time home buyer, please speak with a loan officer and your realtor or seller about seller's concessions which may help cover closing costs in a no money down or 100% financing scenario

Fannie Mae and Freddie Mac both have 100% first time home buyer programs. You may have to pay Private Mortgage Insurance (PMI) There are alternatives to paying PMI, ask you mortgage agent for more information.