FHA and First Time Home Buyers
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First Time Home Buyer Loans
The Borrower is only required to come up with a 3.5% down payment, and the money can be in the form of a gift from a family member. The source of the down payment can be a gift not only from a family member but also from a charitable institution or State home buyers program, such as the Down Payment Assistance Program, etc. This helps tremendously and eases the burden on the borrower if a borrower is struggling to come up with the necessary money for a down payment.
First Time Home Buyer Programs
According to a survey by Apartment List, a majority of millennial renters want to buy a home. The common denominator for all of them is the lack of funds; they all say they cannot afford to buy a home due to the lack of financial savings for a down payment on a new home. What most people don’t realize is that there are first-time homebuyer programs and grants that offer financial assistance to qualified buyers.
FHA Loans are insured by the Housing and Urban Development (HUD) to protect the lenders from a future default of the homeowner. FHA loans offer a low down payment of 3.5%, a low credit standard of 580 middle FICO score, and are best for people who don’t have a great credit history. Those with a FICO score of less than 580 and all the way down to 500 still qualifies but will need a 10% down payment. No other loan program can offer the same criteria for a home loan.
Veterans Affairs home loan program is offered to eligible servicemen/women along with their eligible spouses. It offers a full 100 percent financing and comes with low closing costs as compared to conventional loans. There is no mortgage insurance requirement on VA loans but there is a “VA guarantee fee.”
The United States Department of Agriculture offers 100% financing to eligible properties and home buyers, the VA guarantees the loan in case of future default by the borrower. There are two USDA home loan programs: (1) Direct, and ((2) Guaranteed, respectively. The direct is reserved for the low-income household; low-income is defined as a household making less than 80% of the area median income or AMI. To apply, prospective homeowners must go and apply directly to the USDA regional office near them. The USDA Guaranteed Home Loan program is offered to low-to-moderate income households. To qualify for the program, a borrower must meet the income eligibility requirement and the property must be located inside the USDA eligible area map.
First Time Home Buyer Grants
The My First Texas Home Loan program offers a 30-year, low fixed-interest rate on mortgages for first-time homebuyers through a network of participating mortgage lenders. The program includes the assistance of up to 5% of the mortgage amount as a no-interest, no monthly payment second lien that people can use towards their down payment and closing costs. It is a loan as a second lien but doesn’t need to be repaid until the home is sold, refinanced or paid-off.
The Housing and Community Development Department (HCDD) administers the City’s Homebuyer Assistance Program, also known as HAP. It is offered to eligible low- to moderate-income households. The funds can be used for the down payment, the closing costs, and the buydown of the principal. For product-specific guidelines and requirements, visit the Homebuyer Assistance Program for more details.
An FHA Loan Specialist Ready To Help You
Our FHA Loan Specialists are always available to help you and answer any questions. You may contact a dedicated FHA Loan Specialist through our website or by calling us directly. You may also chat with us to get a quick answer to your questions.
We Make The FHA Loan Process Quick & Easy
Lenders often times will steer their clients away from an FHA loan due to their inexperience with the program. FHA Loans are a great source of funding for our clients. We share our knowledge and experience with FHA loans, making it easier for borrowers.
FHA Approved Lender
The Federal Housing Administration requires lenders offering FHA loans to go through an extensive approval process. We are FHA-approved and designated as a “Full Eagle” FHA mortgage lender offering FHA-insured home loans in Texas.