Own a Home With First Time Home Buyer Mortgage Programs
Is it time for you to finally get out there and purchase your first home? If so, you already know what a big step it is finally being able to realize your American dream. Not only does a home give you a sense of ownership pride, it is a good investment in your future.
Several First Time Home Buyer Mortgage Programs Are Available
There are several first time home buyer mortgage programs specially tailored to the first time home buyer and you will be able to find one that suits your needs, as well as your ability to pay back the loan. Before buying your first home, make sure that your mortgage lender goes over these buyer programs with you so you can find the one that is perfect for you.
FHA First Time Home Buyer Mortgage Programs
FHA loans are the longest tenured first time buyer mortgage programs available for helping the first time home buyer. FHA loans guarantee your loan will be paid back to the lender. It is a sort of insurance that guarantees your loan. FHA loans are perfect for those who have less than perfect credit or for those who can’t afford paying a large payment up front for their home. FHA will not help you get into a home that is not in your price ability to pay back, but it will assist you into getting an affordable home. Pay attention to the prices and don’t let anyone talk you into a home that is over your planned budget.
FHA applications are not unlike those of conventional loans. You need 3 years worth of proof of income, an accounting of your current debt, rent, alimony, and social security. You do not have to worry about the debts that can be paid completely in less than a year because this debt is considered short term and will not count against you.
When you are trying to figure out what you can afford, it is best to go by FHA standards when calculating. Twenty-nine percent of your income can go towards the cost of housing and 41% can go towards your expenses and other debt. If you have a number in mind that is affordable to you, it is best to stick with that number or below when you are out house hunting.
It really doesn’t matter whether or not this is your first home; FHA is there to offer a hand but you should still check around and see what other mortgages are available to you. Remember, this is an investment and it will take the next 30 years to pay it off.
If you want to learn more about FHA loans and how they can help you with the purchase of your new home, you can talk to your lender or visit the FHA website at www.fha.gov. You will find all of the information you need that will allow you to make an informed decision.
Local and State First Time Home Buyer Mortgage Programs
Many areas have local and state programs that you can take advantage of while trying to purchase your new home and all it takes is a small amount of elbow work to research what it is you are looking for. Talk to your realtor because realtors are always a wealth of information and picking their brains may lead you to the right choice for you. If you want to talk to your lender, they are also familiar with the different types of loans that are available. Don’t rush, take your time and you will be sure to find the home of your dreams with first time home buyer mortgage programs.