What are the benefits of a first time home buyer loan?
Personalqs87 asked:
I am looking at a house for $100,000 and I was wondering if anyone that has just recently gone through something similar could let me know what kind of rate and length of a loan I might be able to get. Also what is different from a first time home buyer and other loans. If there is a difference.
Lawrence
I am looking at a house for $100,000 and I was wondering if anyone that has just recently gone through something similar could let me know what kind of rate and length of a loan I might be able to get. Also what is different from a first time home buyer and other loans. If there is a difference.
Lawrence
July 30th, 2009 at 5:18 am
Gladys
I can’t tell you rates and lengths because I’m not a loan person. When my fiance and I were looking into first time home buyer loans this is what we were told…
You do not have to put any money down, AND you will not have to pay loan insurance, which if this was not a first time home buyer loan, you would need the insurance.
That’s about all we found out. If your an indian you could get an indian grant too… Mine was about $15,000 to put towards my loan which paid my closing costs and more.
July 31st, 2009 at 6:07 pm
Ruth
yes fha loans, you would just need 3% down, and closing too which is usually 1% of the loan. also the tax credit they offer is great but has to be paid back. which is a interest free loan pretty much.
rates are low now but with a fha loan rate will be higher then a conventional loan, plus you pay pmi. so example with a fha loan at 100,000 your rate might be 6% but pay $55 a month on pmi till you have 20% equity built. if you did a conventional and put 20% down your rate would be close to 5% and you don’t pay pmi. also you can buy points which are usually 1% cost, they lower your rate and can help plus are tax deductible