first time home buyer – owner loan

April 29, 2010

Mortgage Loans for First Time Home Buyers – 5 Tips

Filed under: Finance — Tags: , , , , , , , , , , , , , , — admin @ 3:55 am
Jed C. Jones Ph.D. asked:




First time home buyers often face some common barriers to qualifying for a new loan: poor credit, feeling a bit overwhelmed, and a lack of knowledge about available options. Here are 5 tips to get you on the road to home ownership.

Tip #1: Start now to improve your credit score: Having a low credit, or FICO, score is one of the biggest barriers to qualifying for a mortgage for first-time buyers. This is even true for people who have perfect payment histories and very little outstanding debt. Why? Because those two items only make up 65% of your credit score.

The remaining 35% of your score reflects your status in these areas: length of credit history, amount of recently-approved or “new” credit, and variation in types of credit currently extended to you. All of these latter three factors particularly affect first-time buyers. What to do? Start improving your credit score right away.

Tip #2: Educate yourself about all of the loan factors: If you have never applied to or been accepted for a home loan before, it is natural that you may not know about all of the factors to consider when applying for a loan. There are multiple ways to structure your loan and a myriad of variables above and beyond just the rate you are getting. If you are just calling around asking for a good rate, you will likely get into a mortgage situation that does not take into account all of your needs. Make sure you educate yourself about all of the options available to you before you start making phone calls.

Tip #3: Be persistent despite feeling overwhelmed: For those who have never owned a home, the idea of borrowing $100,000 or more can certainly sound daunting. This feeling of being overwhelmed can often cause would-be borrowers to put off applying for a mortgage for yet another year. If this is you, it means just another year you will not be building equity in or enjoying your new home. It is natural to feel a bit overwhelmed, but make sure that this feeling does not stop you from moving forward and making it happen.

Tip #4: Learn about unique financing options: Did you know in many cases it is possible to borrow against your IRA without incurring any sort of early withdrawal penalties? This is a privilege that people buying their second or third home do not have. Also: many locales have their own first-time buyer programs that give substantial incentives for people in your situation. Make sure you know all of your options before making your decision.

Tip #5: If you get turned down, call at least 10 more lenders: Nobody likes to be rejected for a loan. But, if you are rejected the first time, call 10 more lenders. It is not the case that one size fits all and the situation of each lender is unique in terms of your eligibility. Also, contrary to popular belief, multiple credit report queries in a short span like 2-3 months from multiple mortgage lenders will not hurt your credit score.

Buying your first home should be an exciting, rewarding experience. By improving your credit score, being persistent in the process and educating yourself about your options, you could soon find yourself in the home of your dreams with a payment you can afford.

Anthony

April 28, 2010

FHA First Time Home Buyer Loan – The FHA Can Possibly Help First Time Home Buyers

Filed under: Finance — Tags: , , , , , , , , , , , , , , — admin @ 10:50 pm
Brian I Park asked:




If you have a bit of money or even no money at all for a deposit, risky credit and a lot of bills, the FHA mortgage could help you purchase your dream home.

The FHA or Federal Housing Administration, a vital part of the Housing and Urban Development, was founded 70 years ago to help FHA first time home buyer, particularly those individuals with low to middle income and minorities, obtain home mortgage they require.

The amount that you can have access to and the FHA will concur, has been significantly increased, letting more borrowers to benefit from these loans.

The new maximum value ranges from $271,050 for single family in not expensive locations to $729,750 in costly cities like San Francisco and New York. The maximum amounts are resolute by estimating 115% of a location’s middle home price.

That is consider a big improvement than that of the old limits which amounted to $200,160 to $362,790- a limitation that made the FHA mortgage insufficient all the way through the areas of California and parts of the Northeast.

As a first time buyer from FHA you might ask what you can benefit from them. Here’s a quick answer to this:

Benefit #1 – You are not required to provide a huge deposit and the lender get help you searching for it.

The FHA will ask from you to deposit at least 3%. Therefore that will cost to about $30 for every $1000 that you intend to borrow.

If you don’t have the amount, it will never be a problem. If can be a donation from your friends, a relative or an association that give financial aid.

The FHA is known to work with the local state programs that extend their help through deposit, closing costs and low interest rate mortgage. Your lender should be more willing to explain how these function.

Benefit #2- Your credit score does not have to be too ideal.

You credit rating is not really that important as the FHA do not make use of it to know if you qualify for a loan or not.

There are over 22 factors that go with computing your credit rating which includes how much credit you have, how much credit you normally utilize and how you apply for a credit. The FHA is not really concern on that issue when it comes to identifying whether you will get the mortgage or not.

Benefit #3- You can still acquire more debts.
The ratio of your debt-to-income can be significantly higher for a FHA mortgage that that of the traditional mortgage. And even the FHA boundaries have been extended to provide home ownership to a lot of individuals.

To know where you must stand, calculate your entire mortgage payments such as hazard insurance, interest, taxes, principal and mortgage insurance to your regular monthly responsibilities like auto loans, credit card debts, child support, and student loans. Then divide the total by the amount of your monthly gross income.

You can be eligible for the FHA mortgage even if it’s your first time to purchase a home provided that your monthly debt disbursements do not exceed 43% of your revenue.

Louise

April 16, 2010

Obama’s First Time Home Buyer Grant Programs to Help New Buyers With Their Down Payment

Filed under: Finance — Tags: , , , , , , , , , , , , , , — admin @ 9:37 am
Bryan Hendersen asked:


ow someone who is planning on buying a new home? First time homebuyers may qualify for a government grant that will help them make this big purchase. These grants are free money that can help future homeowners make a down payment on their new home or help them with the closing costs. The money received from these grants does not have to be paid back.

Different government agencies handle first time home buyer grant applications in different ways. Depending on the funds grated in your area, there are different amounts of money available. Search a current grant directory to find out what first time homebuyer grants are available to you. You can also research the process of submitting an application.

After you have been approved for this grant, you may get the money is just one week. Usually the money will be sent directly to you and other times it is credited to your mortgage. This grant is not dependant on a credit check and no collateral is needed, but you will need to prove your home offer has been accepted and that you have negotiated a mortgage. Sometimes the requirements do change, but this is the general process.

The actual terms of the grant also vary. Sometimes it is expected that you will have been the homeowner for at least three years. If you do not keep the home for three years, you might have to repay the grant. A grant directory will help you find the best grant for your particular situation.

Troy

April 7, 2010

Will Obama’s First Time Home Buyer Stimulus Plan Work For You?

Filed under: Finance — Tags: , , , , , , , , , , , , , , — admin @ 6:20 pm
Bryan Hendersen asked:


en patiently anticipated by many Americans and finally Obama’s first time stimulus plan has been unveiled. Now that it has become a reality, focus has turned to the housing industry. Real estate companies, lenders, politicians from both parties and potential homebuyers are all wondering how this plan will affect the future.

Outlined in this new law, Obama has paved the way for first time homebuyers to receive help in the form of an $8,000 tax credit that will minimize the burden created by purchasing a new home. The hope and purpose of this plan was to stimulate the real estate market, which has really been affected by the recent recession. It is hoped the First Time Home Buyer Stimulus Plan will give the economy a kick-start.

There are many benefits for homebuyers under this plan, especially those who were unsuccessful in previous attempts to purchase a home. The real estate industry will also benefit as people begin purchasing homes again.

The advantages are not limited to just the homebuyer and the lender, local businesses, who have previously suffered because of housing foreclosures, will also benefit. This plan has lead to optimism as people now hope the economy will rise up and some financial prosperity will return to their communities. With this in mind, and with the focus now on the stimulus plan, fears have been subsided and stress is being reduced.

It is possible that some aspects of this plan have not been considered. The First Time Home Buyer Stimulus Plan could have a negative affect on the housing market. People, who had no hope of buying a home prior to the introduction of the plan, are now able to purchase a family home.

However, what is going to happen when the lender decides to raise their rates? In the event of natural disasters like floods or tornadoes and these homeowners have to deal with insurance companies, remodelling costs and demand rebuilding loans how will all this be handled? The Americans that are excited about this stimulus plan should also be watching carefully for future mishaps that will eventually plaque the homeowners as well.

Clinton

November 12, 2009

Government grants for first time home buyers

Filed under: Finance — Tags: , , , , , , , , , , , , , , — admin @ 4:41 am
Cornell Talley asked:


Perhaps, one among the most complex challenges folks face is purchasing the 1st home. With the deposit, closing cost along with the rental cost for the house they are living, it is actually difficult to face all these heavy financial loads. If you already own a house and choosing to buy another home, you certainly would have got place to live in or you get serious rent thru it. But purchasing a first home doesn’t have any such option. Hence the both federal as well as the state government are ready to provide government grants for first time home buyers, to relieve a bit from their cost-effective burden.

Countless americans who would like to own a home find it unrealistic to make satisfactory savings for their dream house, after allotting so many budgets for monthly hire, food, insurance, children schooling, clothing, utility bills and so on. If you are one among them, keep studying this piece to understand the government grants for first time house buyer.

To have first home ownership, you can make an application for the government grants for first time home buyers, but you can’t expect the govt to cover all of the expenses that happen in purchasing a home. You can consider it for closing costs or other such costs. The needy ones have to attend analysis class conducted by HUD.

Government grants for first time home buyers act as a monetary backup and are completely unfettered by any taxes and further, they don’t seem to be considered to be responsibility. The presidency grants do not expect repayment. Thus, the individual that gets this grant need not fret about the repaying procedures.

Usually, the salary of an individual is regarded for suitability. Likewise, the person should have the same level of income during the past 3 years, without any earlier ownership of a house and should not be paying interest to any other mortgage. Just like other presidency grants, government grants for first time home buyers too are not in public announced and many are blind to the specs related to this grant.

If you feel that you are qualified for the government grants for first time home buyers, know the cutoff date to submit the application. You will be asked to give some tax, credit details associated to you and your partner. Tax payers and couples should have the minimum income of 75,000 $ to 150,000 greenbacks. Include all of the required info and applicable documents, along with the application, as when you miss out even a single document, you can’t avail the government grants for first time home buyers.



Josephine

November 1, 2009

A Dream Come True for the First Time Home Buyer

Filed under: Finance — Tags: , , , , , , , , , , , , , , — admin @ 3:49 am
Bryan Hendersen asked:


needs a place to call home and for many that dream involves purchasing a home. This is generally the most significant purchase you will make in your lifetime and some people buy a home and live there for their entire life. Whether you are buying your home for yourself alone or for your family, the First Time Home Buyer Stimulus Programs may help you realize your dream.

Interestingly, this government program, though created specifically for the first time home buyer, can actually be used by those who have not enjoyed home ownership in at least the last three years. If you meet this criterion you are eligible to apply for one of the First Time Home Buyer Stimulus Programs enacted by congress in both 2008 and 2009.

Because of the significance of a home purchase, a smooth transaction is desirable on many levels. When you dream about your ideal home you may imagine that it will be located near your work, within walking distance of your kids’ school, or on a lakefront with a mountain view. Whatever your ideal home resembles, you will want to take the time to look for residences that meet your needs. This can be time consuming but enjoyable. So many decisions must be made that you need to give yourself ample time so you don’t end up feeling like you settled for less than what you wanted. Try to imagine the type of home you want ? one that’s large enough to accommodate you and your family, that is convenient, and that is move-in ready. Then visualize your home with your furniture in place, what things you might need to purchase, what changes you might want to make, and whether you will have enough storage space. Enjoy yourself because this is the easy part compared to the serious financial considerations that will follow.

Knowing your price range in advance will keep you from looking at homes that fall far below or far above what you can afford. How much down payment can you make and what will your taxes be? Do you have any outstanding debts? If so, pay them so they won’t adversely affect your credit score. This will make it easier to secure a loan.

You can get more information from local lending resources. All mortgage lenders know about the federal programs that came about because of the current economic crisis, and they can guide you as a first time home buyer to secure the financial assistance you need. There are some major benefits involved with these programs ? lowered interest rates, tax credits, and assistance with a down payment. Significantly lower interest rates may be available for disabled home buyers or those who are on a low or fixed income.

The First Time Home Buyer Stimulus Programs are being made available as a way to assist first time home buyers, encouraging them and helping them find ways to purchase a first home. This helps not only the new homeowner but has the positive side effect of stimulating the economy while assisting in the purchase of new or existing homes.

Javier
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