Friday December 12, 2014
If this is your first time buying a home, you may want to consider getting a first-time homebuyer loan or enrolling in the NACA or VA loan programs. Although these types of loans have a few limitations, there are several benefits that make the home-buying process less expensive and restrictive for first-time buyers. Did you fall in love with one of the brand new townhomes in a CB JENI Homes community, but this is your first time buying? See if you qualify for first-time homebuyer loans and programs.
What Is A First-Time Homebuyer Loan?
First-time homebuyer loans are offered by the Federal Housing Administration and by most states. The federal government and most states hope to make things easier by keeping you protected with insured home loans specifically for first-time homebuyers. This type of loan offers a lower down payment, limited feese, reduced interst rates and the option of possibly deferring payments. These loans with lower restrictions are the perfect option for first-time homebuyers who:
• May not have enough money in savings for a large down payment.
• Have a credit score that does not qualify for other types of home loans.
• Have a hard time meeting high interest payments and fees.
However, even if you do qualify for other loan types, the interest rate may be too good to pass up for a first-time homebuyer loan.
Do I Qualify For A First-Time Homebuyer Loan?
A person is considered a first-time homebuyer by the FHA if they have not owned a home in three or more years, which includes those who only owned a house previously with a spouse. Most lenders require a credit score of 620 or 640 and higher and a down payment of 3.5% in order to approve an FHA loan. You will also need to provide full documentaion of all income and assets and satisfy the lender’s debt-to-income ratio, which is usually up to a 41% to 43% maximum of your gross income. This means that only 41% to 43% of your gross income goes toward the minimum payments of all your revolving and installment debts.
Start shopping early for a first-time homebuyer loan (most FHA lenders reccomment at least one month in advance) so that you are able to gather and prepare the proper documents and devote enough time to do your research and compare options. CB JENI Homes hopes to make the home-buying process as smooth as possible, so make sure you check out a list of FHA lenders and be aware of the lending limits for the Dallas area.