|Real Estate Information|
Easing Your Way Into Homeownership: A Guide To Low Down Payment Mortgage Programs
There's no question about it: Buying a first home is a big financial commitment. In most cases, a home is the largest single purchase an individual or family will make in a lifetime. However, because of the tax advantages afforded to homeowners, buying a home also can be one of the best financial decisions you'll ever make.
Problem is, many would-be homeowners remain renters simply because they mistakenly believe mortgage lenders require that buyers come up with 20 percent of the purchase price as a down payment. While it's true lenders feel it's less risky to work with buyers who are able to bring a substantial down payment to the table, the standard 20 percent requirement is fast becoming a relic of the past. In recent years, lenders have become more flexible in working with first-time homebuyers by creating a variety of special programs that require only a small down payment. These programs, combined with the most favorable interest rates in two decades, have encouraged growing numbers of renters to consider the tremendous benefits of home ownership.
While the list of programs offered by individual lenders is too extensive to mention in detail, here are some common programs you are likely to come across as you work with your real estate agent to purchase your first home:
Federal Housing Administration (FHA): FHS mortgages allow homebuyers to purchase a home with as little as a 5 percent down payment, and to finance all non-recurring closing costs. The current maximum loan amount in most urban markets is $151,725. In addition, borrowers are allowed to use up to 41 percent of their gross income toward paying mortgage debt - well above the ratio allowed under most private programs.
Department of Veterans Affairs (VA): VA mortgages allow veteran or active service personnel purchase home with no down payment, up to the current maximum price of $184.000. However, there is no purchase price limitation for buyers able to make a down payment. Like the FHA program, VA borrowers can put up to 41 percent of gross income toward their mortgage debt.
Mortgage Revenue Bonds and Mortgage Credit Certificates: Mortgages funded with these instruments typically require a minimum of 5 percent down and have interest rates that are 1.5 to 2 percentage points below conventional 30-year fixed rates. These types of loans, offered by state and local housing agencies, are available only to first-time homebuyers. There generally are income and purchase price caps that vary, depending on where you plan to buy.
Private Mortgage Insurance: Most major lenders offer privately insured mortgages, which generally require a 10 percent down payment (although some lenders offer loans with a 5 percent down payment to buyers with exceptional credit). These loans typically are not limited by maximum loan amount or purchase price limitation.
Community Homebuyer Program: Through their networks of mortgage lenders, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) offer Community Homebuyer Program loans. These programs require a 5 percent down payment, 3 percent of which may be a gift. To further help buyers qualify, applicants may use 38 percent of their gross income. Currently, the maximum loan amount available through these programs is $203,150.
Clearly, there are a lot of options for first-time homebuyers. While lenders will be more than happy to share information about their own programs, you can save yourself a good deal of time by first selecting a professional real estate agent who is experienced in working with first-time buyers in the areas where you plan to buy.
An agent who focuses on first-time buyers will know from experience which lenders in your area offer a low down payment program that will meet your unique needs.
Today, taking the first step toward owning your own home is easier than before. Your real estate agent is your best resource for finding innovative ways to help you come up with a down payment and qualify for financing. There's certainly no need to wait until you've saved a 20 percent down payment!
About The Author
W. Troy Swezey is the author of "EASING YOUR WAY INTO HOMEOWNERSHIP: A GUIDE TO LOW DOWN PAYMENT MORTGAGE PROGRAMS." As a Realtor at Century 21 Paul & Associates, he has helped many individuals with their real estate needs. Visit his web site to download his free e-book, "REAL ESTATE SECRETS EXPOSED." http://www.TroyIsMyRealtor.com or mail to: TroyC21@usa.net
Elon Musk Warns Of A Real Estate Crash: Our Approach Seeking Alpha
Signature Bank's New York Real-Estate Problem National Review
8 Best Places to Live in Texas, According to Real Estate Experts Travel + Leisure
Elon Musk says the state of the commercial real estate debt market is ‘by far the most serious looming issue’ - Fortune
Elon Musk says the state of the commercial real estate debt market is ‘by far the most serious looming issue’ Fortune
Eight Must Reads for Real Estate Investors Today (March 28, 2023) Wealth Management
$6.29M estate hits market as most expensive home listing in Concord - Charlotte Business Journal - Charlotte Business Journal
$6.29M estate hits market as most expensive home listing in Concord - Charlotte Business Journal Charlotte Business Journal
Real Estate Roundup: Jolley Lane home in Marshall goes for more than $800K and other Fauquier County transactions - Fauquier Now
Real Estate Roundup: Jolley Lane home in Marshall goes for more than $800K and other Fauquier County transactions Fauquier Now
Michael Saunders makes top 500 real estate ranking Your Observer
Here Are NYC's Biggest Real Estate Loans in February The Real Deal
Next Dor: From Fashion to Real Estate | Detroit Jewish News The Jewish News
The Top Real Estate Companies in Georgia Real Estate
Crescent Real Estate exec heads to West Dallas investor The Dallas Morning News
Real Estate Transfers (Week of March 27) Times Bulletin
How do real estate agents get paid? Stephanie Jones tells us what we need to know when buying a home - WLUC
How do real estate agents get paid? Stephanie Jones tells us what we need to know when buying a home WLUC
Cottage real estate rush slows to a stall Financial Post
East Cobb residential real estate sales, March 6-10, 2023 East Cobb News
Plan B Investments Buys 70 Property Portfolio from Trei Real Estate - Sovereign Wealth Fund Institute
Plan B Investments Buys 70 Property Portfolio from Trei Real Estate Sovereign Wealth Fund Institute
Mignon Lagatta Real Estate purchases Reno building | Serving ... Northern Nevada Business Weekly
Foreigners Check Out Greek Real Estate Online GreekCityTimes.com
Four Jacksonville Re/Max real estate agents honored Jacksonville Journal-Courier
Real estate market hits seasonal slowdown in Capital Region The Saratogian
Real Estate: March 13 – March 17 Newport This Week
Private equity real estate firm acquires St. Mary’s County shopping ... Maryland Daily Record
Market Turmoil Slows Momentum for Real Estate Interval Funds Wealth Management
Breaking Down Real Estate's Banking Crisis Nightmare The Real Deal
Real estate, utilities ETFs see outflows; crypto products lure inflows ... Pensions & Investments
Forren retiring from West Virginia Real Estate Commission post Parkersburg News
Wilton Real Estate Report (March 17-23, 2023): Five Properties ... Good Morning Wilton
HOT PROPERTIES: 79-acre site along I-185 sold GSA Business
Real estate plans from candidates Brandon Johnson, Paul Vallas Crain's Chicago Business
Real Estate Experts Rank TOP 8 Texas Cities To Live In 2023 Traveling Lifestyle
Is Real Estate the Next Shoe to Drop? Investing.com
Real estate developer Robert Rosenberg, who died Friday, had ... - Greater Wilmington Business Journal
Real estate developer Robert Rosenberg, who died Friday, had ... Greater Wilmington Business Journal
Public Records: Muskingum County Real Estate Transfers Zanesville Times Recorder
Prairie Land REALTORS® partners with MLS Grid to manage real estate data feeds, standardize vendor licensing - Yahoo Finance
Prairie Land REALTORS® partners with MLS Grid to manage real estate data feeds, standardize vendor licensing Yahoo Finance
Real estate professionals crucial to helping sell home Cleveland Jewish News
Sheppard Mullin Lands Five-Attorney Real Estate Team Business Wire
Tedisco Helps Open New Mechanicville Real Estate Firm The New York State Senate
In Duluth, Real Estate Collides With Climate The New York Times
2023 Distinguished Real Estate Award University of Cincinnati
State of Federal Real Estate | Transportation and Infrastructure ... - The House Committee on Transportation and Infrastructure
State of Federal Real Estate | Transportation and Infrastructure ... The House Committee on Transportation and Infrastructure
Link Real Estate Investment Trust : REIT's Rights Issue is 240% Subscribed Marketscreener.com
REAL ESTATE | DPW crews rehab salt shed in Hartford, WI | By ... washingtoncountyinsider.com
Delray dream run real estate professional Pecotic set to achieve dream by combining work with tennis, sets goal of playing 25 tournaments this year - TennisUpToDate.com
Delray dream run real estate professional Pecotic set to achieve dream by combining work with tennis, sets goal of playing 25 tournaments this year TennisUpToDate.com
City Likely to Settle with Ex-Real Estate Adviser For $9.4M Voice of San Diego
Tahoe real estate TV show to launch in April Tahoe Daily Tribune
Former Tampa Area Real Estate Professional Sentenced To 24 ... Department of Justice
Estate Mogul Tied to SF Scandal Buys $15M home The Real Deal
Routt County real estate sales eclipse $12.5M from March 17-23 Steamboat Pilot & Today
School of Business Launches Online Real Estate Development ... Montclaire News
How the Banking Crisis Could Hurt Real Estate Lending Knowledge@Wharton
Real estate market appears to be stabilizing Addison County Independent
This One Rookie Homebuyer Move Drives Real Estate Agents Crazy Realtor.com News
Should Sellers Order a Pre-sale Home Inspection?
One of the main reasons home sale transactions fall apart is inspections. This happens when something unanticipated is discovered during the buyers' inspections of the property, and the buyers and sellers can't agree on a remedy.
You Wanna Get High With Me?
Being a home inspector is great. It's fun, it's interesting, and I get to meet wonderful people.
Home Equity Loans - Beware of Appraisal Fraud
A new report by the independent Demos group has revealed what may not be a surprise to many people - corruption is rampant in the home appraisal industry. The bust in the dot-com market of some five years ago has left would-be lenders with a surplus of cash to lend.
Why Use a Property Manager?
Most experienced property investors use property managers. Why? Because they make you money.
Property Investment - What Future For the Biggest Bubble of All Time?
The Economist magazine published a special report in this months issue entitled "House Prices ? After The Fall". Some might call it pessimistic, alarmist, nonsense or worse but only the foolish would choose to ignore the research that comes out of a think-tank with the kind of resources that this highly respected publication has.
Escrow From a California Homeowners Perspective
The Escrow ProcessBoth Buyer and Seller deserve the assurance that no funds or property will change hands until all of the instructions in the Purchase Contract have been satisfied. The Realtor submits Buyers and Sellers signed documents and Buyer's deposit money to be held by an independent neutral third party (Escrow).
Tenants in Common (TIC)
Tenants in Common is a way of sharing ownership of property among two or more people. Each tenant holds an undivided interest in the property, and each tenant may own a different size portion of the property.
The Bubble Effect
Turn on the TV at almost any time day or night and you will find news and talk shows informing us that there is a Real Estate bubble. What is a "bubble" and how do they know? The simple principle of what goes up must come down is being applied in general thought now and many in the public are starting to buy it.
Are You Really A Twenty First Century Investor
Today's residential real estate market for investors has become very competitive in most major markets. The vast majority of real estate investing seminars and clubs are encouraging you to search out desperate home owners or distressed properties to be rehabbed.
Why Property Investors can Crash and Burn
Many experts say you can't lose if you put your money into Property. Not true.
First impressions do make a difference when selling your home. Oftentimes, before making the phone call to schedule an appointment, a homebuyer will drive by your home to determine if they may be further interested.
Real Estate Investing Produces Extraordinary Profits
Imagine making $5000 a year from real estate investing without recognizing you are real estate investing!Real estate values are so dynamic. The marketplace is always fluid and changing.
Essential Buyer's Guide for Overseas Real Estate
It's been said many a time that overseas real estate buyers leave their brain on the plane when they step out into the sun in their overseas destination of choice. They've already fallen in love with the country, its people, climate and lifestyle and they've come to snap up that dream home.
Understanding Opportunity Cost When Investing In Property
While most investors have got involved in property investing because they understand the opportunities to make money through leverage and capital growth or high yields, I still see and hear of many who do not fully understand opportunity cost.Remember anyone that gets into property is usually in it to generate money or income - how many deals/properties you own is insignificant.
Investing In Commercial Property
Investing in commercial property is well beyond the financial means of most people. Few can afford the large sums of money involved in buying commercial real estate.
Real Estate Internet Marketing Is The Way To Go
Real estate Internet marketing is a booming business, along with all other forms of Internet businesses. Now, it seems that very little can't be sold over the Internet.
Should You Allow Buyer To Rent During Closing?
It's not uncommon for an investor to sell a house and have the buyer request the right to rent and occupy the property while the closing is being completed.You're a bad guy if you refuse and often in hot water of you agree.
Cutting Edge Real Estate, Is the Bubble Ready To Burst?
Of course, this is the big question in real estate now. .
Important Information For Condo Buyers
Here is a step by step guide for buyers looking to buy a condo in any area. These are important tactics to make a solid and accurate judgement on the property you're looking to purchase.
The Secret Jewel in the Mediterranean Crown
Since the Northern Cypriots famously voted 'yes' to the UN backed Annan plan for the peaceful reunification of Cyprus in 2004 the world has awoken to the secret and hidden beauty of this untouched jewel in the Mediterranean crown. Those open-minded and individual thinkers seeking elegant living, unrivalled Mediterranean-region investment property opportunities or their own hideaway are today embracing Northern Cyprus.
|home | site map|
|© 2006 TIGER MEDIA|