No Down Payment Mortgages
VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.
USDA Single Family Housing Direct Home Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
3% Down Payment Mortgages
The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.
Home Possible® Advantage Mortgage (3% Down Payment)
Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.
3.5% Down Payment Mortgages
FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.
203(k) Rehabilitation Mortgage Insurance – FHA’s Limited 203(k) program permits homebuyers and homeowners to finance up to $35,000 into their mortgage to repair, improve, or upgrade their home. Homebuyers and homeowners can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or an FHA appraiser. Homeowners can make property repairs, improvements, or prepare their home for sale.
OTHER MORTGAGE PROGRAMS
Good Neighbor Next Door – Law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD’s Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence.
Indian Home Loan Guarantee Program – The Section 184 Indian Home Loan Guarantee Program is a home mortgage product specifically designed for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. Congress established this program in 1992 to facilitate homeownership and increase access to capital in Native American Communities.
If you are applying for a first time home buyer mortgage, it is normal for the lender to check your credit report and see your credit score. Your credit history helps determine the possible risks and decides rates, terms and other conditions.
The Credit Repair
The process wherein consumers with poor credit histories try to reestablish their worthiness is called the credit repair. It involves procuring the credit report from agencies and taking careful and appropriate steps in addressing apparent issues, including omissions, misreporting, misinterpretation or other inaccuracies.
If there are any discrepancies found in the credit report, the consumer is entitled to dispute the errors that unjustly harm their financial healthiness and credit worthiness. There are several laws and regulations that are designed to guarantee fair and legal undertaking of the credit report process. These laws can be used to legally and formally start the process of credit repair.
Every consumer is entitled to one copy of credit report each year from each credit reporting agency. Investigations with regards to the real nature of the inaccuracies and errors are possible and necessary for a successful credit repair.
What influences your purchasing power and eligibility of availing any credit facilities in the future is your credit record. You should keep in mind that a good credit score can help in several purposes, such as: mortgaging a home, buying a car or applying for a job. On the other hand, a bad credit score can make you vulnerable to exorbitant interest rates and unnecessary loan terms from several companies. These two facts are important in helping you understand why maintaining a good credit score is vital.
How to Repair Your Credit
The process of credit repair can be achieved through hard work and discipline. Easy methods, which can help you get out of poor credit history, can be quite tempting. However, these easy way outs can only lead to further difficulties in the future especially if they are done illegally.
In case your poor credit history is caused by circumstances beyond your control, you can always request for an upgrade in your credit rating to your creditor. However, this can only be done if you were able to make amends to your credit records after the circumstances.
Creditors do not normally trust consumers who default on their payments. This can pose a difficulty to you in obtaining a new credit. However, once you are able to demonstrate enduring stability in your income and prompt patterns in your payments, the situation can improve in the span of two to three years. This way, even though there is a case of bankruptcy, you are likely to be eligible for credit cards within two years if the steady income is maintained.
Keep in mind that there are no quick fixes in repairing your credit. By contacting credit bureaus, creating your own corrections, budgeting and consolidating your debts can improve your own score.
The Wyoming Community Development Authority helps Wyoming first time home buyers through down payment assistance, grants, and loans.
Address: 155 North Beech Street Casper, WY 82601-1907
Phone: (307) 265-0603
The Wisconsin Housing and Economic Development Authority helps Wisconsin first time home buyers through down payment assistance, grants, and loans.
Address: P.O. Box 1728 Madison, WI 53701-1728
Phone: (608) 266-7884
The Washington State Housing Finance Commission helps Washington first time home buyers through down payment assistance, grants, and loans.
Address: 1000 Second Avenue, Suite 2700 Seattle, WA 98104-1002
Phone: (206) 464-7139
The Virginia Housing Development Authority helps Virginia first time home buyers through down payment assistance, grants, and loans.
Address: 601 South Belvidere Street Richmond, VA 23220-6504
Phone: (804) 782-1986
The Vermont Housing Finance Agency helps Vermont first time home buyers through down payment assistance, grants, and loans.
Address: P.O. Box 408 Burlington, VT 05402-0408
Phone: (802) 864-5743
The Utah Housing Corporation helps Utah first time home buyers through down payment assistance, grants, and loans.
Address: 2479 South Lake Park Boulevard West Valley City, UT 84120
Phone: (801) 902-8200
The Tennessee Housing Development Agency helps Tennessee first time home buyers through down payment assistance, grants, and loans.
Address: 502 Deaderick Street, Andrew Jackson Building, Third Floor Nashville, TN 37243
Phone: (615) 815-2200