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First Time Home Buyer Options

  • Looking for your first home? Now is the time to buy!
    Let us show you low- and no- downpayment options today.

    Great news! With the many options now available for qualified buyers, you may be able to buy a home sooner than you ever thought possible. Below are 5 mortgage programs that require little or no money down:

    1.“97% LTV” Conventional Loans: The 3% Solution!

    • For 1-unit principal residences only, including condos!1
    • Fixed-rate mortgage with maximum 30-year term
    • Loan limits: $484,350 in most counties
    • Down payment and reserves may come as a gift from an eligible donor2

    See us to compare the cost of a conventional loan vs. FHA loan:

    Conventional 97% LTV3

    3% downpayment minimum
    No upfront mortgage insurance premium
    Monthly mortgage insurance can be terminated

    FHA

    3.5% downpayment minimum
    Requires upfront mortgage insurance premium
    Most FHA loans require monthly mortgage insurance for the life of the loan

    Now available for qualified buyers: the new Freddie Mac Home Possible® Mortgage offers reduced rates on private mortgage insurance for low- to moderate-income borrowers.

    2. FHA Loans: Downpayments as low as 3.5%

    Federal Housing Agency (FHA) loans have the benefit of a low downpayment. Be certain to compare the overall costs of all loan products, including the monthly and long-term costs and conditions of the required mortgage insurance. FHA loans require both an annual Mortgage Insurance Premium (MIP) and an Upfront Mortgage Insurance Premium (UFMIP).

    On January 26, 2015, FHA reduced the annual MIP4 that new borrowers will pay by half of a percent. This action is expected to lower the cost of housing for the approximately 800,000 households who use FHA annually.5 For example, on a 30-year fixed mortgage loan with a principal balance of $200,000, the savings to the borrower could be $1,000 a year.

    3. Conventional Loans: Downpayments as low as 5% PLUS Gift Funds allowed

    Qualified first-time and move-up borrowers may be able to get a conventional loan for as little as a 5 percent down. In addition, the funds needed to complete the transaction may come from a personal gift from an acceptable donor. This may include funds for all or part of the downpayment, closing costs, or financial reserves.6

    4. VA Loans: 0% downpayment

    Veterans, active-duty service personnel, and reservists deserve to live the American dream that they help protect. Features of the VA loan program include:

    • Up to 100% financing for qualified borrowers
    • Choice of fixed-rate or adjustable-rate products
    • Funds for down payment—plus all closing costs—can come entirely from gifts, grants and waivers

    5. USDA Rural Development Guaranteed Housing Loan Program: 0% downpayment

    If you’ve been house hunting in an outlying area, a “Rural Housing” loan is designed to create opportunities for those with limited savings or modest incomes.7 There are no minimum down payment or cash reserve requirements, and closing costs may be financed as part of the loan amount.

     

    There are a variety of downpayment options available. It’s important to note that loans with low downpayment features may require monthly mortgage insurance which could increase the overall cost of the loan. Talk with a home mortgage consultant for additional details. Contact us today for a complimentary consultation.

     

    1 Manufactured housing is not eligible.

    2 Acceptable Gift Donors: A relative of the borrower (borrower’s spouse, child, or other dependent, or one related by blood, marriage, adoption, or legal guardianship), a fiancé, fiancée, or domestic partner.

    3 Available for qualified buyers and limited cash-out refinance.

    4 HUD Mortgagee Letter 2015-01, January 9, 2015

    5 HUD Press Release No. 15-001

    6 Subject to certain minimum borrower contribution requirements. Certain affiliation and relationship restrictions may apply. See your home mortgage consultant for specific details.

    7 Credit is subject to approval. Property location and income restrictions may apply and homebuyer education may be required.

  • 1.“97% LTV” Conventional Loans: The 3% Solution!

    • For 1-unit principal residences only, including condos!1
    • Fixed-rate mortgage with maximum 30-year term
    • Loan limits: $484,350 in most counties
    • Down payment and reserves may come as a gift from an eligible donor2

    2. Conventional Loans: Downpayments as low as 5% PLUS Gift Funds allowed

    Qualified first time may be able to get a conventional loan for as little as a 5 percent down. In addition, the funds needed to complete the transaction may come from a personal gift from an acceptable donor. This may include funds for all or part of the downpayment, closing costs, or financial reserves.3

     

    1 Manufactured housing is not eligible.

    2 Acceptable Gift Donors: A relative of the borrower (borrower’s spouse, child, or other dependent, or one related by blood, marriage, adoption, or legal guardianship), a fiancé, fiancée, or domestic partner.

    3 Subject to certain minimum borrower contribution requirements. Certain affiliation and relationship restrictions may apply. See your home mortgage consultant for specific details.

  • Refinancing with FHA Streamline may help qualified borrowers reduce their overall mortgage payment, decrease an existing interest rate and help build home equity faster.
    Refinance with confidence

    Features

    • Lender-paid closing costs – No out-of-pocket closing costs for borrowers
    • No appraisal required – using the original appraised value may help minimize declining home values
    • No maximum income ratios – changes in income may have less impact
    • Quicker financing process – reduced documentation helps facilitate a faster loan closing
    • Potential refund of existing FHA upfront MIP

     

    Please see program specific pages for details or speak with your local mortgage consultant.
    By refinancing an existing loan, your total finance charges may be higher over the life of the loan.

  • The USDA Guaranteed Rural Housing Loan Program’s mission is to assist low to moderate income, rural home buyers achieve their homeownership dreams.

    As an approved lender, we offer USDA loans to qualified borrowers and can help applicants purchase a home with affordable interest rates and loan terms.1

    Features:

    Budget-friendly benefits — no minimum down payment or cash reserve requirements. Closing costs and fees may be financed as part of the loan amount up to 100% of the appraised value.2

    Contributions allowed — Iinterested party contributions of up to 6% and gift and grant funds are permitted

    Built-in resale advantage — loans are assumable, with Rural Development approval, giving qualified, future buyers an option to take over the exisiting interest rate.

     

    No or low down payment options may not be the best product for all borrowers. Please consult your mortgage consultant to discuss your financing options.

    1. Eligible only for single family, primary residences purchased within the eligible rural areas as defined by the USDA. Credit is subject to approval. Property location, asset and income restrictions apply, and home buyer education may be required.
    2. A guarantee fee is charged and collected at the time of closing and can be paid by the buyer or seller, or financed. Loan amounts may exceed the appraised value of the property (e.g. >100% LTV) to include the amount of a financed guarantee fee. This applies only to loans for which all or a portion of the guarantee fee is being financed into the loan.

  • 3% Down First Time Home Buyer Program

    We offer 3% down, conventional home financing1 for qualifying borrowers.

    According to consumer research, the ability to save enough money for a down payment and closing costs is often the main obstacle that stands between potential first time home buyers and homeownership.

    In support of first time home buyers who may lack the funds to make a larger down payment and cover closing costs - but otherwise qualify for a mortgage - we offer 3% down, conventional home financing.1

    Here are some key features:

    • 3% down payment (97% LTV)
    • 30 year fixed rate mortgage loan
    • 3% down payment and reserves (if required) may be supplied by gift funds
    • 1-unit primary residences eligible (e.g. single family homes, town homes, condos, planned unit developments (PUD))
    • Pre-purchase homeownership education required
    • Borrower on the loan must not have owned any residential property in the previous 3 years

     

    1. Low down payment financing options may not be the best option for all borrowers. Consult your mortgage consultant to review potential loan scenarios and financing options to determine the home loan that is right for you.

How to Prepare...

How to Prepare for Making an Offer on a House

Monday, December 9, 2019

So you’ve found the perfect house and you’re ready to move forward and make an offer. The number you put forth is one of the most important decisions you’ll make in the entire home-buying process, so before you make that offer, be sure to consider the following: You...

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