The 2 Easiest Loans For First Time Buyers
The lending world is an ever evolving one to say the least. To stay up-to-date with all of your options is not always easy.
Depending upon your credit, debt ratios, and cash available each loan product has features that can be attractive. If you are a first time buyer there are two loans available that will most likely be your best option….
A. FHA Loan- An FHA Loan is a loan that only requires 3.5% down. You don’t have to be a first time buyer to get one… it is just that most first time buyers aren’t carrying around enough cash to come up with more than 3.5%. You can even have the down payment given to you by a family member. FHA is usually a little more understanding with less than perfect credit scores. The drawback to an FHA loan is that the appraisals are more strict and end up being more like home inspections. This makes it difficult for buyers who are purchasing in a market full of foreclosures requiring a lot of work.
B. VHDA FHA Plus (Max)- This new VHDA product is a 100% financing product requiring $0 down. This is the first 100% product that I have seen in a while. In using this product the buyer must have at least 1% of the sales price available, there is a second trust of at least 5%, the interest rates on these two loans are slightly higher than a traditional loan, the buyer can not make more than $86,900 a year, and the purchaser must complete a VHDA class (there is now one online).
If you are a first time buyer contact me and I will email you my first time buyer packet.
FHA loans are still the way to go here in Central Florida. Whether refinancing or purchasing – we’re finding that as folks transition from renters to owners, FHA provides the best deal for them. Tack on the $8K FHB credit – and it’s go time!
Thanks for the tips — I’ve got that eventual goal to move out of apartment living, and all the talk of financial crises had me wondering if that would even be possible.