With the Mortgage Industry going through so many changes over the past few months many people think that getting a First time Home Buyer loan and or 100% financing is not possible. This is not true. There are many programs still available to help first time home buyers buy a home and there are plenty of 100% financing program available.
CHFA: Connecticut Housing Finance Authority Has some great programs for qualified first time home buyers with up to 100% including closing costs, they also offer a great low fixed rate.
FHA: The most popular FHA home loan program for a first time home buyer is by far is the 203(b).FHA Loans are not credit score driven and even if you don't have a credit score it may still be possible to get a FHA Loan. This is your standard fixed rate loan for 1-4 family owner occupied houses and only requires a minimum of 3% from the borrower. This loan also permits 100% of their money needed to close to be a gift from a relative, non-profit organization, or government agency which I can help arrange.
The main advantage to a FHA home loan is that the credit criteria for a first time borrower are not as strict as Conventional Loans sold to Fannie Mae (FNMA) or Freddie Mac (FHLMC). Someone who may have had a few credit problems or no traditional credit should not have a problem obtaining FHA financing.Finally, FHA loans may may require less income to qualify as they will exceed the Conventional debt ratios of 28/36% as their standard is 29/41%.
VA LOANS: If you are looking to purchase a home with no money down, you're in luck if you qualify. VA mortgage loans can be guaranteed with no money down. An added bonus? No private mortgage insurance requirement with a VA guaranteed loan. The VA even offers help for those looking to refinance.
Some first-time homebuyers are misinformed as to the workings of a VA Loan. The Veterans Administration does not normally act as a lending agent. Instead, the VA is in the business of guaranteeing the loans of veteran. In most cases, the VA offers a guaranty to those who meet the requirements, the first of which include a good credit rating. If you are considering any kind of home loan, it's best to consult a credit counselor and a financial planner to find out what credit rating you already have and what you can do to improve your credit rating before applying for the guaranty. It's important to know that a VA home loan guaranty is available only if the veteran has the income to handle house payments
There are also other great 100% programs available to qualified buyers, contact me for more information or if I can help answer any questions for you.
Leo Namiot
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