![]() |
![]() |
Mortgage Information |
|
![]() |
![]() |
Easing Your Way Into Homeownership: A Guide To Low Down Payment Mortgage ProgramsW. Troy Swezey There’s no question about it: Buying a first home is a big financial commitment. In most cases, a home is the largest single purchase an individual or family will make in a lifetime. However, because of the tax advantages afforded to homeowners, buying a home also can be one of the best financial decisions you’ll ever make. Problem is, many would-be homeowners remain renters simply because they mistakenly believe mortgage lenders require that buyers come up with 20 percent of the purchase price as a down payment. While it’s true lenders feel it’s less risky to work with buyers who are able to bring a substantial down payment to the table, the standard 20 percent requirement is fast becoming a relic of the past. In recent years, lenders have become more flexible in working with first-time homebuyers by creating a variety of special programs that require only a small down payment. These programs, combined with the most favorable interest rates in two decades, have encouraged growing numbers of renters to consider the tremendous benefits of home ownership. While the list of programs offered by individual lenders is too extensive to mention in detail, here are some common programs you are likely to come across as you work with your real estate agent to purchase your first home: Federal Housing Administration FHA: FHS mortgages allow homebuyers to purchase a home with as little as a 5 percent down payment, and to finance all non-recurring closing costs. The current maximum loan amount in most urban markets is $151,725. In addition, borrowers are allowed to use up to 41 percent of their gross income toward paying mortgage debt – well above the ratio allowed under most private programs. Department of Veterans Affairs VA: VA mortgages allow veteran or active service personnel purchase home with no down payment, up to the current maximum price of $184.000. However, there is no purchase price limitation for buyers able to make a down payment. Like the FHA program, VA borrowers can put up to 41 percent of gross income toward their mortgage debt. Mortgage Revenue Bonds and Mortgage Credit Certificates: Mortgages funded with these instruments typically require a minimum of 5 percent down and have interest rates that are 1.5 to 2 percentage points below conventional 30-year fixed rates. These types of loans, offered by state and local housing agencies, are available only to first-time homebuyers. There generally are income and purchase price caps that vary, depending on where you plan to buy. Private Mortgage Insurance: Most major lenders offer privately insured mortgages, which generally require a 10 percent down payment although some lenders offer loans with a 5 percent down payment to buyers with exceptional credit. These loans typically are not limited by maximum loan amount or purchase price limitation. Community Homebuyer Program: Through their networks of mortgage lenders, the Federal National Mortgage Association Fannie Mae and the Federal Home Loan Mortgage Corporation Freddie Mac offer Community Homebuyer Program loans. These programs require a 5 percent down payment, 3 percent of which may be a gift. To further help buyers qualify, applicants may use 38 percent of their gross income. Currently, the maximum loan amount available through these programs is $203,150. Clearly, there are a lot of options for first-time homebuyers. While lenders will be more than happy to share information about their own programs, you can save yourself a good deal of time by first selecting a professional real estate agent who is experienced in working with first-time buyers in the areas where you plan to buy. An agent who focuses on first-time buyers will know from experience which lenders in your area offer a low down payment program that will meet your unique needs. Today, taking the first step toward owning your own home is easier than before. Your real estate agent is your best resource for finding innovative ways to help you come up with a down payment and qualify for financing. There’s certainly no need to wait until you’ve saved a 20 percent down payment!
| ![]() | ![]() | ![]() | RELATED ARTICLES Home Equity Loan vs Home Equity Line Of Credit Many people confuse a home-equity line of credit with a home-equity loan. With so many different kinds of loans it can get confusing. So lets look at the difference so you can get a better understanding of what works best for you. Bad Credit Qualify Yourself For A Zero Down Mortgage Loan I decided to write this article today after closing a home purchase loan for a couple that had some major credit issues.They got into the house with ZERO down payment, and only had to bring $600 for the closing costs.Their situation was pretty bad, I’m talking about a bankruptcy 2 years ago, thousands of dollars in outstanding collections, charge-offs and debt to income ratio of 49%.By the way, we left all of their outstanding charge-offs and collections open which means they didn’t have to pay any of them off!So many think they wont be able to qualify for a mortgage loan.Many will keep thinking they cant qualify until they read this article. 7 Ways to Stop "Selling" & Start Building Relationships Sometimes we can all use a friendly reminder to keep us from backsliding into old ways of thinking aboutselling that lead us down the wrong path with potential clients. Discover What You Really Want To Do Are you doing what you really want to do or did you just fall or wander into the job you now have. As a friend of ours once said,’ I am one of twenty two doctors in our family. The only ones in our family who are not doctors are the dogs and cats’. Did you decide what you wanted to do or are you one of a growing number whose work was dictated by circumstances or their parents The Top 20 Web Mistakes Small Businesses Make My parents made a monster. Little did they know 30 years ago that they would get exactly what they wished for. Like W.W. Jacobs tale of "The Monkeys Paw", they got what they wanted, for better and maybe even for worse. A Simple $20.00 Investment Can Protect You, Your Family and Your Nest Egg! NY - 07/23/04 - What if you discovered that twenty dollars could give you access to an array of valuable information that addresses the lifestyle, needs and financial interests of people 50 and over. Well, a twenty dollar annual membership in Senior Resources of America, headquartered in West Hills, California, does just that and more. What is Bridging Finance Once you understand what the term, “Bridging Finance” means, it’s easy to understand how it got its name.The purpose of a bridging or bridge loan is to provide short term cash for a real estate transaction until permanent financing is secured.Bridge loans are commonly used to “bridge the cash gap” when completing commercial real estate transactions. 5 Easy Ways to Save and Build Wealth 1. Pay off high-cost debt. The best investment most borrowers can make is to pay off consumer debt with double-digit interest rates. For example, if you have a $3,000 credit card balance at 19.8%, and you pay the required minimum balance of 2% of the balance or $15, whichever is greater, it will take 39 years to pay off the loan. And you will pay more than $10,000 in interest charges. How To Prepare For A BIG Pay-Off When You Sell Follow the steps below to get a higher price for your house: 16.4% APR $5,000 Auto Loan…HELP! Are you the victim of a high interest rate auto loan If so, the following email discussion may help you.Read on: Should You Get A Blog A blog is a type of website. It allows the website owner to easily write messages that get posted to the site automatically, often in a journal or diary-like style. A particularly appealing thing about blogs is that your readers can comment back to your posts fairly easily, and a continuous stream of fresh conversations result. This is a good thing. Find the best Mortgage Rate for you Most people tend to take out a mortgage, then forget about it. The monthly payments go out from their accounts every month, but they probably couldnt tell you what the interest rate was if you asked! This is slack financial policy - it is easy to make sure you always have the best mortgage rate, and therefore pay the least interest. And believe me, over the years, even a fraction of a percent reduction in interest rates means big savings! Love, Marriage and Money The f-word. Finances. Combining love and money may be the biggest stumbling block on the path of true love, creating more rifts in relationships than in-laws, drug and alcohol addiction, or infidelity. Should you choose to refinance Refinancing has become a valid option for many individuals with high interest rates on their mortgage. Refinancing is essentially a replacement loan, with a different lender and hopefully a lower interest rate. Worried About Debts Having trouble paying your bills Getting dunning notices from creditors Are your accounts being turned over to debt collectors Are you worried about losing your home or your car Reduce Your 30 Year Mortgage To 10 Years Using Mortgage Cycling With all the talk lately about Mortgage Cycling versus Bi-Weekly Mortgages which one is really right for you Choosing the correct one could literally save you thousands of dollars and shave off approximately 20 years on the life of your 30 year mortgage. How To Turn Business Losses Into Cash Flow When the typical new business operator starts a business, they concentrate on making the business succeed.That is necessary but not the only thing that a business operator should concentrate on.A business depends on cash flow to exist and grow, so business operators would do their business a good turn by looking at sources of cash flow provided by the Government. Questions and Affirmations -The Art and Science Of Talking To Yourself I Hear Voices… Fanning the Flames of the Diabetes Epidemic INTRODUCTION Why Choose a Remortgage You would choose a remortgage because it allows you to change your mortgage without moving your home. Remortgaging is the process of switching your mortgage to another lender that is offering a better deal than your current lender thereby saving money. A remortgage can also be used to raise additional finances by releasing equity in your property. ![]() |
home | site map |
© 2005 |