How does a first time home buyer's loan work?
Was just wondering how it differed from any other loans out there
- BobLv 68 years agoBest Answer
The loan itself is no different than loans for 2nd, 3rd or 10th time home buyers, but many states (including California) have programs specifically for first time buyers that provide down payment assistance grants, preferred interest rates or both.
The programs typically have the following requirements:
1. Income limit based on county median income for your family size
2. First time buyer education or counseling
3. Proof (tax returns)you haven't owned a home in the past three years.
They will require you to reside in the home and may provide a grant in the form of a forgivable second mortgage to be used toward your down payment and closing costs. VA and USDA loans do not require a down payment, but if you use FHA or conventional financing with these programs you will be required to provide at least 1% of the purchase price of your own funds for the down payment.
A link to the California program website is provided below:Source(s): Licensed Loan Officer in Ohio
- matchettLv 43 years ago
at the start with the drop in earnings and while you're no longer engaged on the comparable place even area time your earnings won't qualify in this in any respect. 2d is you're properly suited that a private loan that length will probably fee around $1400 a month with taxes and insurances lined. third their are courses yet FHA does require commencing the 1st of the year 3.5% down fee and that would properly be proficient from a kinfolk member. Lat element is by no ability EVER purchase a house with some one till you're wed. this would reason extensive issues in case you chop up up. I see it daily in this communicate board. Now you are able to by no ability cut up up i wish you do no longer even even though it does ensue. You adult males are no longer waiting to purchase a house yet as you have no long term decrease fee costs in place Sorry i'm a private loan banker in TN & KY
- FlusteratedLv 78 years ago
Depends...if it's an FHA loan, then only 3% down payment is required. 1st time home-buyers enjoy tax credits not available to others, depending on your area and/or loan programs. Other than that, they're about the same.
- real estate guyLv 78 years ago
Flusterated" is years behind in her knowledge. FHA is 3.5% down and there are no federal tax credits anymore. Your state my have loans that are restricted to first time buyers and they may have income limits.
Otherwise, a mortgage is a mortgage.
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- Genuine GuidanceLv 78 years ago
A mortgage is a mortgage. You have to qualify for it whether it's your first time or 20th.
- Anonymous8 years ago