Many FTHB’s (First Time Homebuyers) have heard you need 20% down or perfect credit to get a mortgage right now. Lenders have been in the news a lot, and the natural reaction is that when lenders struggle or fail, loans are harder to get. I am not denying that there are less loan programs now than 24 months ago or even 24 days ago, but there are still great programs available for the FTHB!
Let’s take a look at the programs available today…
#1 USDA Rural Housing Loans
Everyone has heard of USDA Choice beef, but most people are unaware that USDA also has a housing division. Rural housing loans were created to encourage home ownership in rural areas, and this loan quickly becoming a popular choice for first timers. USDA loans offer 100% financing and no monthly PMI! Combine that with low fixed rates and you have yourself a great mortgage program!!
The only drawbacks are income limits (which are generous) and area restrictions.
#2. FHA Mortgages
It’s hard to find someone who hasn’t heard of FHA. It’s an oldie and goodie! FHA has great loan limits and no income limits, so almost all first time buyers can use FHA. Only 3.5% is required for down-payment and credit requirements are fairly easy to meet. FHA is certainly the most widely used programs for the first time buyer.
#3. VA (Veteran Affair) Loans
If you have served our country with the Armed Forces, you might qualify for a VA mortgage! VA offers 100% financing and no monthly mortgage insurance, similar to USDA. Loans are available up to $417,000. If you aren’t sure if you are eligible, I can help you find out fast.
If you would like more information about mortgages available in your area, please give me a call at 980-721-7478. You can also visit my website at www.LoansByOlan.com.