A first time home buyer has more options available to them then ever before. A first time home buyer may also qualify for Down Payment Assistance Programs as well by qualifying for home loan from a lender who accepts grant funds from a nonprofit organization, or by purchasing a participating home from a seller who agrees to make a contribution to the program after the home closes.
Many first time home-buyers are even able to obtain 100% financing and can get a loan without having to put any money down for a down payment. Many times even when a first time home-buyer is obtaining a home mortgage loan that requires zero money down for a down payment there are still some closing costs that will need to be taken into consideration. There are usually ways to have the closing costs paid for as well; however some lenders may require that you bring some money to the closing table to pay for some closing costs. One such way, and probably the most common way, to have your closing costs paid for is through a seller concession. A seller concession is where you have the seller contribute the money for the closing costs.
Depending on the type of loan program you are considering, you can also receive a gift from friends or family members to help you pay the closing costs.
Fannie Mae has a program for first time home buyers that will allow 100% financing with limited or zero credit history and will allow stated secondary income up to 25% of your verified income which can help with debt ratios.
Many lenders participate in the Community Home Buyers Program sponsored by Fannie Mae, which is specifically tailored toward First Time Home Buyers. This type of loan provides loans for low to moderate income buyers who might not qualify for a traditional loan.
The opportunity of owning your own home today is at an all time high. With all the different programs and lenders available, the dream of owning your own home can be a reality. Take some time to speak with your mortgage specialist to create the exact scenario needed for your particular situation.
Check with your local city hall to see if there are any assistance programs for first time buyers, these programs assist in areas of closing costs and down payment assistance.