First Time Home Buyers

Many home loan programs have been specifically created for first time home buyers. These loans feature low down payments and approval guidelines that make it easier to qualify. Some of the more popular first time homebuyer programs are listed below. To get started immediately click here for our online application.

What is a First Time Buyer Loan?

FHA and VA Loans for First Time Buyers

Who is Eligible for a First Time Loan?

Community Home Buyer Programs

What is Escrow?

Mortgage Credit Certificates

What is a First Time Buyer Loan?

Many people dream of owning a home but the loan process can be confusing for many first time buyers. Mortgage lenders offer first time buyers many home loan options and assist the buyer in finding the best home loan for them. First time home buyer programs can offer lower interest rates, low down payments or reduced taxes.

FHA and VA Loans for First Time Buyers

First time homebuyers often experience the most difficulty amounting a significant payment and everyone should have the opportunity to buy a home. For this reason the Federal Government has developed two loan programs to assist homebuyers that have a little or no down payment. These programs are called the Federal Housing Administration (FHA) and the Veteran’s Administration (VA). These programs are not solely intended for first time home buyers; your home loan advisory will be able to determine if you qualify and if so which program is acceptable for your needs. FHA and VA loans can be especially advantageous when combined with a HFA or MCC first time homebuyer program.

Who is Eligible for a First Time Loan?

First time home buyer programs are designed to help borrowers who may not have enough money to pay the full cost of the down payment or the closing costs on a mortgage. These programs are even specifically designed for residents of each state. Borrowers qualify for these programs if they have not owned a home for the past three years.

Community Home Buyer Programs

Community home buyer programs reduce the down payment the borrower must pay to 3%, which must be the borrower’s own funds. The closing costs can be gift funds, a grant or seller assistance up to 3% of sale price. This type of home loan requires the home buyer to take a class on home ownership in their state. Upon completion of the class, the homebuyer will receive a certificate that reduces the cash requirement and expands the qualification ratios. Community home buyer programs have been making it possible for many people to have the opportunity to purchase a home.

What is Escrow?

Escrow is a deposit of funds, a deed or other instrument by one party for the delivery to another party upon completion of an event. In simpler terms, escrow is where the transaction changes hands and guarantees the seller will receive the money from the sale and ensures the buyer receives the home that was purchased. Escrow is important to both the buyers and sellers during the mortgage process.

Mortgage Credit Certificates

A Mortgage Credit Certificate or MCC is a certificate awarded by your local government agency authorizing the home loan borrower to take certain federal income tax credits. The credits awarded help to free up funds and make the monthly home loan payments more affordable for the homeowner. First time home buyers are typically the candidates eligible for an MCC but in special cases this requirement may be waived. Income and purchase price requirements also vary state to state and should be covered in conversations with your home loan representative.