Loan Options for First Time Buyers!
VA Loans: This is a loan that is available to veterans, reservists, active-duty personnel, and surviving spouses of veterans. You can get a lower interest rate than conventional loans, don’t need to have mortgage insurance, require no down payment, no cash reserves, and no application fee. Also, the seller is required to pay certain closing costs, which decreases the closing costs for the borrower as well.
FHA Loans: These were created to help borrowers who wouldn’t otherwise qualify for a traditional home loan or would be subject to higher interest and high mortgage insurance. Available as 30- and 15-year fixed-rate loans as well as 3/1 and 5/1 ARMs, the loans require only a 3.5 percent down payment, which can be from a qualified gift, and there are no income limitations. These loans offer flexible underwriting, and a non-occupant family member may co-sign (for single-family homes only). Property condition standards are much more relaxed than they used to be for these loans, and borrowers can even roll in non-structural rehab work totaling up to $35,000 on the home. Also, the federal mortgage insurance for these loans is usually much less expensive than private mortgage insurance (PMI), which saves you some money.
Loans with 97% Loan-to-Value: These loans are just what they say: they let you finance up to 97 percent (with DU approval only) of the home’s value, which makes them an excellent start for young homebuyers wishing to buy, but not having much for a down payment. With only 3 percent down, you can finance the purchase of a single-unit primary residence with a price tag of up to $417,000.
Buying your first home doesn’t have to be so intimidating. Educating yourself and going in with a Realtor who knows the market and loan options are the first steps towards home ownership. This is the “market of a lifetime” for buying a home.
Don’t wait for prices and rates to go up. You CAN take that step towards buying for first home. Give me a call so we can discuss what will work for you.
Laura Taylor 435-632-4265