Mortgage Loans for First Time Home Buyers

In recent years, first time home buyers have found FHA mortgages a very attractive option when looking to close on their first house. These incredibly secure government mortgages require a very little down payment, which allows homebuyers to close more quickly on the home of their dreams. For many of these 1st time home buyer programs, FHA will require a down payment as little as 3.5%, making the down payment on a home purchase transaction a much more affordable endeavor.

first time home buyer mortgage

The down payment on a mortgage can prove to be a challenge for many first time home buyers, as this amount is often much greater with a non-FHA loans. Typically, this down payment amount can be around 20% plus closing costs, causing the purchase of a $100,000 home to require a $20,000 down payment plus any costs which may be associated with closing. This can allow first time home buyers mortgages to be more affordable easier to close escrow quicker. FHA loan programs have helped people to buy a house at a price they can afford. There is no application fees to review first time home buyer offers from leading mortgage lenders online. In some cases, people find that owning a home is less expensive monthly than renting. Take a few seconds & complete the form below to see what is available for you.

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Talk with Lenders and Learn How FHA Mortgages Can Best Help First Time Home Buyers!

With the right unit, FHA can insure a first time homebuyer mortgage to a qualified applicant. FHA is a valuable asset to subsequently mortgage their own home plus make their first venture into investing in rental properties quite a bit easier. An FHA mortgage must be used to purchase a primary residence, however, should that residence have multiple units, it is only required that the buyer occupy one of the units for his or her primary use. This means that should a FHA mortgage first time home buyer purchase a residence with 2 or more units, they can rent out the other unit or units while occupying 1 space for themselves. This allows these first time homebuyers to not only purchase their first home, but to make their first foray into investment properties that will help them to pay off their mortgage payments faster.

It is important to note that the FHA program is not a lender in and of itself, but a mortgage insurance provider that allows those who qualify to get a 1st time home buyer mortgage with a much lower down payment. What sets an FHA mortgage aside is the availability of a very affordable down payment that allows first time home buyers to close on their home without needing to wait to save for a significantly higher down payment plus closing costs. For a first time home buyer looking to venture into the world of home ownership, this often means being able to achieve their dream faster and for an easier to save for rate.

If you are a first time home buyer with poor credit, you need to research FHA or subprime home financing programs. Not all banks will even consider loan applications from people with sub-par credit scores.

Tips for First Time Home Buyers with FHA:

1) FHA Loans Are Flexible With Credit Requirements for First Time Home Loans
If you don't have established credit, that doesn't mean you'll be unable to get your FHA loan. If you have credit, but have issues such as a bankruptcy, foreclosure, or modest credit score, you may still qualify the minimum FICO score is 500.

2) Debt to Income Ratio Requirements Are Easier with FHA
If you have debts such as credit card debts, medical bills, or other "revolving" accounts that can take a while to pay off, you might have difficulty getting a traditional mortgage loan. The FHA rules for first time home buyer loans are much more forgiving as long as you can document income.

3) Gift Fund Rules Make It Simpler For You to Pay For Out of Pocket Expenses
While there are some closing costs involved with every home loan that does not mean you have to go into debt paying them! Thanks to "gift fund" rules that are specific to first time mortgage loans, a family member or other third party can help with your needs.

4) Down Payment Requirements Are Minimal Compared to Other Types of Loans
Down payments for other types of loans can be substantial, totaling up to 20% of the sales price. With FHA, the first time home mortgage only requires the borrowers to deposit 3.5% of the selling price of the house or its total appraised value, choosing the lower of the two.

Where Should You Get Your First Home?
A Look at The Top Ten Markets

If you are flexible in your buying plans, you can improve your odds of a great deal by examining the real estate market in specific communities. Pennsylvania, Florida, and Texas have wonderful opportunities for first time home buyers!

Here is the current top 10 list:

  1. Pittsburgh, Pennsylvania
  2. Tampa, St. Petersburg and Clearwater, Florida
  3. Philadelphia, Pennsylvania
  4. Fort Worth-Arlington, Texas
  5. Orlando, Florida
  6. Jacksonville, Florida
  7. Philadelphia, Pennsylvania
  8. Dallas, Texas
  9. Raleigh, Durham, and Chapel Hill, North Carolina
  10. Phoenix and Mesa, Arizona

Wherever you plan to buy, FHA is great for first time home buyer programs. BD Nationwide can help you contact FHA lending advisors so you can get more insight into the process and you might be in your new home as soon as a few months from now.


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