There are many first time buyer mortgages available that will make obtaining your first home easier.
There are a couple of government sponsored programs that help first time home buyers financing their new home. Freddie Mac and Fannie Mae have great programs that can be forgiving to borrowers who are not strong with their asset portfolio or make the median income in their area.
If you qualify FHA and/or VA first time home buyer mortgages availible through the government are great programs for first time home buyers. They offer low rates and generally are not credit score driven so even borrowers with slight flaws on their credit can still qualify. You will have to go to a mortgage broker approved to do FHA and VA loans in order to apply for these types of first time home buyer mortgages.
In most lender's eyes, being a First Time Home Buyer means that the borrower has not owned a home within the last three years of making application for a mortgage.
Many first time buyers want to buy a home but have little to no money to put down on a home. There are many mortgage programs that cater to these needs. One of the most common ways to buy a home is by utilizing what is called a "Combo Loan". A combo loan is a mortgage that is split up into 2 loans. The first mortgage will generally be 80% of the purchase price of the home while the second mortgage will be the remaining 20% of the purchase price. This allows homebuyers to buy a home with no money down and also allows consumers to avoid having to pay PMI, Private Mortgage Insurance. Therefore, if you are looking for a first time buyer mortgage please give us a call and we can figure out the best program for you.
Fannie Mae's MyCommunity Home Loan is a popular choice for first time buyers. This program allows for 100% financing and the purchaser is only required to contribute $500 into the transaction. This program also offers discounted Private Mortgage Insurance for 100% financing. For more information, call 415-617-5448 or e-mail at [email protected].