Birmingham Down Payment Assistance Program

Birmingham Down Payment Assistance Program was created as a way to assist first time home buyers

Birmingham Down Payment Assistance Program gives a $4999 grant to first time home buyers. To learn more call (205) 254-2863.

This first time home buyer program is subject to change and may no longer be available. Not all first time home buyers will be approved for the Birmingham Down Payment Assistance Program. There are other options such as the Alabama FHA Home Loan that can help borrowers who have little money for a down payment and/or settlement costs.

Visit Alabama First Time Home Buyer Programs for more first time home buyer programs.

How to Apply for First Time Home Buyers Mortgage

Getting a First Time Home Buyers Mortgage

A first time home buyer can find it easy to shop for a first time home buyers mortgage these days. You no longer have to struggle with traveling from place to place trying to find a loan. Applying for a loan online has made the process much easier and you can compare rates in your own spare time.

In a few simple steps, you will be able to find the perfect first time home buyers mortgage that will suit you and your financial needs by going online. Here are the steps you will want to take while trying to secure your first loan:

1. First select the terms of the first time home buyers mortgage.

The terms of your loan are going to have an effect on your payment and the interest rate. If you want to get the most value for your money, it is best to look for an adjustable rate loan. Your payments will start out low but will grow in time. If you want to stay within a steady budget, look for a first time home buyers mortgage that is set at a fixed rate as this will allow you to know exactly what you’re paying for the remainder of the loan. If you choose a loan that will be paid off in 15 years, you should know that the payments will be at least 1/3 higher than the average 30-year mortgage but you will be saving a substantial amount in final costs by cutting the interest considerably.

2. Know what first time home buyers mortgage you’re getting into.

Make sure you are clear about payback interest rates because a higher rate can have you spending thousands more in the long run.  If you want to buy a home and sell it off rather rapidly, you should look for a loan that offers lower closing costs. If you plan on staying in your home for several years then taking advantage of lower rates will be in your best interest.

3. Get your first time home buyers mortgage online.

You can get your loan started right online saving you the headache of running all over town to get to the first time home buyers mortgage lender. Even if you have not found the home of your choice, you can get pre-approved for a loan that will help you when it comes to placing your bid on a home. You can get all of your forms in the mail and the headache of finding the right loan has been greatly reduced.

Advice for the First Time Home Buyer

Buying your first home is a great time full of excitement and even fear. The process of buying your first home is unfamiliar and can be a bit intimidating. There are several mortgage loan programs available and it is important to know the difference between them before signing on the dotted line. You should also know what factors can increase or even decrease your chance of getting a great rate.

What is Your Bottom Line?

Many first time buyers end up purchasing a home that is out of their price range and they can’t afford it. Many people make the wrong assumption. Just because a loan is approved does not mean you can actually afford the monthly payments. Lenders do sometimes approve loans that are higher than what a buyer can afford because let’s face it, they make more money on these loans. You need to figure in cost of living, utilities, and emergencies.

Getting Pre-Qualified

When you are pre-qualified for a loan, the sellers know that you are probably going to be able to get the mortgage and make your home buying go smoother. You will also be able to know the price range of homes you should be looking at so you don’t waste your time on homes that are out of your price range. A pre-approval is still a loan that will have to be processed but it states that if your current situation has gone unchanged, you will be able to get the loan you apply for.

Get Your Credit Under Control

Make sure that any debts you have outstanding are paid for or at least under control before you start applying for loans. If you have a bad debt on your account, fix it before you begin. If you have a good credit history, you will be able to make a choice in loans. If you have poor credit, you may be stuck with the loan that is offered, high interest and all. Don’t skip payments and by all means pay off the smaller loans that can affect your score.

Select Your Mortgage Package

Your broker will have an idea on what loans you may qualify for. If you want to keep a little cash on hand, you should look for a loan with little to no down payment that will have to be handed over up front. Let your lender know what it is you are looking for and they will find you the best deal possible.

Using an IRA Withdrawal for Down Payment on a Home

IRA Withdrawal for Down Payment

People wanting to purchase a new home today have to come up with larger down payments then they used to have to. Recent economic woes have forced lenders to tighten lending requirements and reduce risk. The days of getting into a home with little to nothing down comes at the cost of higher interest rates or rejected applications.

IRA Withdrawal and Mortgages

Banks are often wanting a substantial down payment. Often they would like to see twenty percent or more used to secure the mortgage. Few people have this money easily available to them. But there is a resource that many people do not think about.

Your IRA is a potential source of those higher down payments. But you must understand the implications of using your IRA withdrawal for such a purpose. Selling that individual retirement plan may seem like a great idea, but you need to keep some things in mind.

IRA Withdrawal and Age

If you are not 59.5 years old, you will be charged an immediate ten percent penalty for early IRA withdrawal. The amount withdrawn will also be reported as income on your taxes. States vary but you may even find the state leveling taxes and penalties on an early withdraw of funds.

There are ways around these tax and penalty implications. The IRS publication 590 lists exceptions to the penalties and taxes. First time home buyers are often considered exempt, however it is always best to make sure that you fully qualify by checking with the IRS.

IRA Withdrawal For First Time Home Buyers

It is important to remember that these IRA withdrawal exceptions are almost exclusive to first time home buyers. Generally the home must be residential and not commercial or rental. Tax laws are subject to change, especially at the local and state level, so you should consult with a tax adviser on the exact implication of using your IRA for the down payment of a home.

Kentucky First Time Home Buyer Loans

What You Need To Know About Kentucky First Time Home Buyer Loans

Kentucky First Time Home Buyer Loans
Kentucky First Time Home Buyer Loans

Kentucky first time home buyer  loans are available but the applicants must follow a number of requirements. For you to be eligible for a home loan it is required that the home that you want to buy is the first home you own in Kentucky. This therefore, ensures that this house is your principal home and you don’t have any other residential house.

The mortgage loan as the Kentucky first time home buyer loans has a maximum repayment period of 30 years. You ought to have serviced your mortgage loan within that period since the time the loan was granted to you. In order to get the mortgage loan you are also required to make a down payment without which you cannot get the loan.

Kentucky First Time Home Buyer Loans and Credit Scores

The Kentucky first time home buyer loans will also insist on the applicant to have high credit scores in order to be eligible for the loans. You must have credit scores of over 660 and anything lower than this will disqualify you for a home loan. The credit scores will assist the financial institution in ganging your credit worthiness.

When you are taking the Kentucky first time home owner loans it is quite imperative to conduct a thorough research on different financial institutions. This is basically with regard to the interest rates charged and the terms of their loans. It is therefore, quite important to settle for the best rates when you are applying for a home loan.

Kentucky first time home owner loan are of different types and therefore, it is important to discover the loan that suits your needs. You have to ensure that you can be in a position to service the loan without a lot of stress. It is imperative to first of all assess your financial situation and know very well the amount of Kentucky first time home owner loans that you can be in a position of repaying.

Who Qualifies as a First Time Home Buyer

width="150"Question: Who qualifies as a first time home buyer?

Answer: An individual who purchases a home for the first time is not necessarily considered a first-time home buyer. The criteria defined by individual retirement account (IRA) will spell out the key requirements for those who qualify to be considered as First-time home buyer.

The IRA criteria will assist the individual in gaining certain privileges which may include exemption from what is known as early distribution penalty.

To qualify for the First-home buyer tag one is not expect necessarily expected to be purchasing a traditional home but the purchase is expected to be the individual’s principal home. The applicant cannot qualify if the purchase is for a second home or a vacation residence.

The home buyer or a family member (for example a spouse) must be the owner of the IRA. Accordingly, the IRA sets a maximum amount which may be distributed without penalties at $10,000 for the life of the plan. The limit applies separately for couples thus making couples enjoy a combined limit of $20,000.

Despite previous home-ownership not being a disqualification feature, it is required that the home-owner not to have owned a home in the previous two years.

The purchase of first-home will only cover acquisition costs which can only be qualified by accepted assessors and the purchase must be made within the required time limits for one to qualify. Thus one cannot exceed at least 120 days after distribution from IRA.

In order to qualify for first time home loan programs, generally one is required to meet some special income and credit qualifications. While an individual’s credit score may be in good standing may be impacted negatively if one has had a negative score in his accounts within a period of 12 months prior to applying for a first-home program. Incidences of property foreclosures on your credit history in the past can also make one be disqualified or be placed under special restrictions.

If you need more information on who qualifies as a first time home buyer feel free to contact us.

Government First Time Home Buyer Programs


Steps to Getting Government First Time Home Buyer Programs

Achieving American dream has become quite difficult. However, it is not impossible. Many families in the US need homes right now.

It is trickier for first time buyers to get funds to purchase their dream homes without down payment. You can get your house thanks to the government first time home buyer programs. This is good news for us really.

Our government saves money every year to help us pay for things. This is called a government grant. The money you get can be used to pay for both closing costs and down payment.

It is essential for you to get an application in a government-sponsored site to know more about how you can get help to buy your first home. Please make sure that the deadline is not due once you read up the site. It is essential for your success in this task that none of the deadlines has passed.

The next step is submitting your application. You need to prove that you are a first time buyer who needs help to purchase your house. It is important to provide tax information about your dependents, your spouse and you.

These are some of the most important factors that will determine whether you will get your grant or not. It is vital to included everything that is requested. Please make sure that you have filled out all the boxes. Forgetting to include anything will stall the process.

You will have to wait longer if you miss out on something. Please have patience since the government first time home buyer programs take time to review and approve.

Please understand that the government first time home buyer programs are not loans. You may or may not have to pay it back.

To search for government first time home buyer programs in your area, simply use our search feature at the upper right.

Why Are First Time Home Buyer Mortgage Rates Different?

src=""One of the most common questions asked is Why Are First Time Home Buyer Mortgage Rates Different?

For individuals buying their first home, getting a mortgage can be a daunting task. It is thus understandable that such first time buyers would be overwhelmed. Understanding what the first time home buyer mortgage rates are is essential for such buyers to decide effectively before purchasing.

Depending on the financial and mortgage provider there are different mortgage loans available. Essentially, these rates are vital if you one the first time buyer is to get a home that he or she can comfortably afford. Some of these rates include fixed, FHA and adjustable.

The fixed mortgage rates offer fixed interest rates to first time home buyers, the FHA rates are competitive and have a much reduced down payment when compared to other mortgage loans. The adjustable mortgage rates have lower starting rates and are changeable afterwards.

Now that you know why first time home buyer mortgage rates are different you can start the process of becoming a home owner!

First Time Home Buyer Mortgage Calculator

Need a First Time Home Buyer Calculator?

Below is first time home buyer calculator. Follow the steps outlined below the calculator to understand how to calculate your monthly mortgage payment.

[mlcalc calculator=”mortgage_only”]

First Time Home Buyer Calculator Steps

Follow these steps to use the first time home buyer calculator.

Step 1: Enter the purchase price. This is the amount for which you will be house price. The actual loan amount is less any down payment.

Step 2: Enter the down payment amount. This percentage amount is how much you will be putting down to buy your home.

Step 3: Enter number of years, typically 30, this is the number of years for payment.

Step 4: Enter the interest rate. This is the yearly mortgage interest rate based on your credit, debt and ability to pay.

Step 5: Enter the property tax. This is a yearly payment paid by your mortgage company (out of your escrow account) to the state. Leave empty if you don’t know it.

Step 6: Enter the property insurance. This is a yearly payment paid by your mortgage company (out of your escrow account) to your home owners insurance company. Leave empty if you don’t know it.

Step 7: Enter the PMI or private mortgage insurance. If you don’t know this value, leave it blank for now.

Step 8: Click Calculate.

The first time home buyer calculator will show your monthly payment!

FHA Grants – First Time Home Buyers


What are FHA Grants for First Time Home Buyers?

Planning to buy a new home and money is the problem? Well the Federal Housing Administration (FHA) offers loans to all those in need of purchasing home. Before the FHA grants first time home buyers came to being people had to wait a very long time before getting enough money to purchase a home.

The FHA grants first time home buyers eases the burden in the whole process of acquiring the right home. For one to be eligible to get a home without the FHA loan there is a down payment of between 3% and 20% required. But with the loan this can be achieved.

This was part of president Obama’s stimulus package when he came to power in 2009. To be legible for this loan one must not own any principle residence since 2009, the property in question must be within the United States. The applicant must not be earning an income that is more than 75,000 dollars and if it is a couple they should not earn more than 150,000 dollars.

In case the home was bought before 2009 when the law was enacted then one is legible to paying up to 7,500 dollars in tax credits. To qualify for this FHA grants first time home buyers, the home must not be related to the family of the buyer. This means that the house should not be, a gift, inheritance, or purchased from a family member.

If all these are not met, then the loan cannot be acquired. The FHA grants first time home buyers has really made it easy for many families to acquire their dream home. FHA grants first time home buyers has lead to more and more people opting to buy homes instead of renting.