First Time Homebuyer Loans

First Time Homebuyer Loans

There are many options, down payment assistance programs and incentives for first time home buyers which can make home buying easy and affordable.

Benefits may include:

• Low rates and fees.
• Minimum cash out of pocket.
• Down payment assistance and gifts are acceptable.
• Closing costs can be paid by seller or lender.
• Special Incentives.
• No prepayment penalty.

Guidelines:

Loan limit. Up to $420,680 in low-cost areas and up to $970,800 in high-cost areas for single family. 2-4 units are higher limits.

Max loan to value.  USDA and VA allow first time homebuyers to finance up to 100% of the purchase price plus energy improvements. FHA allows first time homebuyers to finance up to 96.5% of the purchase price while Conventional allows first time home buyers to finance up to 97.75%.

Down payment assistance. There are many down payment assistance programs that will take care of the down payment. We will look at all DPA options to find the best one for you. 

Term. Fixed terms available from 10, 15, 20, 25, 30 years and 5-year ARM’s.

Mortgage insurance. Upfront mortgage insurance and monthly mortgage insurance is required on most loans except for VA.

Credit Score. Minimum requirement is a 600 median score.

Debt-to-income ratio. 43% is standard however we have seen approvals up to 60% DTI. Lenders measure your debt-to-income (DTI) ratio by dividing your total debt by your gross monthly income.

Occupancy. It must be your primary residence however you can purchase up to a 4-unit property if you live in one of the units.

Property type. 1–4-unit homes, condominiums, townhomes, and manufactured housing on a permanent foundation.

Appraisal. Required on most first-time homebuyer programs.