First-Time Homebuyers

Owning a home is more possible today than ever before! First-Time Homebuyers should first educate themselves by checking out the laws/regulations that protect them as a homebuyer – so that they ensure they do not wind up spending more money than necessary. First-Time Homebuyers must first understand some of the specifics of mortgages. In essence, there are three main details a lender will assess when considering one for a home mortgage: Income-inclusive of assessment of one’s job stability; Assets-inclusive of one’s ability to make a down payment as well as having money available for closing cost fees; and Credit/Debt-inclusive of one’s ability to pay a mortgage based on one’s current monthly bills. These items will assist the lender in determining what mortgage loan program as well as what amount a consumer may qualify for.

Request a free 1st Time Home Buyer Quote Today >>

About First-Time Homebuyer Mortgages

Home Purchase Mortgage Loans are a vital part of buying a home. Unless a consumer can actually pay cash for their dream home, they will need a Home Purchase Loan. A consumer may use a these loans to buy any type of home, inclusive of a primary or secondary residence, as well as investment property. The sole restriction is that the property must be a home. A vast array of mortgage programs and products are available.

Request a free 1st Time Home Buyer Quote Today >>

Consumers may wish to investigate these options:

• A Fixed-Rate Mortgages
• An Adjustable-Rate Mortgages
• An Interest Only Loans
• A Jumbo Mortgages
• A LIBOR Mortgages
• Other Loans Are Available – Consumers should check directly with a trusted lender

Likely one of the most popular programs for First-Time Homebuyers is Fannie Mae’s Flex-100 Home Purchase Loan. The program is unequivocally assistive for consumers that are first-time homebuyers who can afford the monthly payment BUT are unable to afford a down payment. The consumer would not be required to put any monies down with this program although they will need to provide $500.00 for the closing costs of the mortgage. Use a Fannie Mae-certified lender to obtain a Flex-100 Mortgage. A great benefit of the Flex-100 mortgage is that it utilizes Fannie Mae’s outstanding automated underwriting system which evaluates the consumer’s application and speeds up the decision-making procedure. First-Time Homebuyers may utilize this program to make their entry into the American dream of homeownership. Owning a home provides a consumer with a vast amount of financial power and it gets even better after they are able to build equity. To support this program, there are a few payment plans a consumer can consider. Likely one of the most common plans is the option for a Fixed-Rate mortgage (FRM) of fifteen or thirty years. Adjustable-Rate mortgages are another option. The program does not discriminate between income brackets (higher/lower incomes). A consumer may qualify for the program even if they DO have enough money for a down payment! Fannie Mae guidelines allow the consumer to spend their down payment on moving expenses, home repairs, or to simply save it for future mortgage loan payments.

Request a free 1st Time Home Buyer Quote Today >>

Difference Between the Flex-100 Mortgage and the Flex-97 Mortgage

Although Flex-97 has similarities of Flex-100, there are differences. Flex-97 requires the consumer to pay three percent (3%) of their home’s purchase price as a down payment.

Are There Any Other Loan Programs That Can Be Used for a First-Time Homebuyer Mortgage?

• “The Zero Down Payment Act” from FHA The Act creates opportunities for first-time homebuyers.

• If qualified, VA-guaranteed home loans allow veterans/service people with the ability to procure a home loan with favorable terms AND usually without a down payment.

• The Rural Housing Service (RHS) guarantees mortgage loans for RURAL residents with no down payment and only minimal closing costs. Rural consumers should check out Section 502 Rural Housing Guaranteed Loan Program to information.

This site is not a broker and does not collect or solicit mortgage applications. Content is for informational or comparison purposes only. Services are not available in New York. Products and services may not be available in all other states.