First Time Homebuyers, FHA, and a Down Market
First time Homebuyers are becoming more educated about real estate and mortgages (FHA) by allowing themselves more time to get comfortable with all the elements. First time home buyers have been taking notice. First time buyers with strong credit histories and a sizable down payment are the best positioned to buy right now. Read more about conventional mortgages and eligibility.
Those first time buyers without a substantial down payment might consider a mortgage backed by the Federal Housing Administration (FHA). FHA loans require only a 3% down payment, which can be a gift from friends or family; First time home buyers can also seek down payment assistance from the Nehemiah Program (down payment assistance program supported by a non-profit organization). Down payment assistance is available to borrowers who qualify for a FHA loan. Read more about Nehemiah Program and eligibility.
The numbers of FHA borrowers have been growing substantially. So has the number of mortgage companies who are eligible for originating an FHA loan. Approved FHA mortgage companies are held to a higher set of standards to ensure compliance and transparency. Ask your mortgage professional if s/he is FHA approved. Read more about the FHA loans.
After you become more educated about the real estate and mortgage industry, first time home buyers should always begin the process by asking for referrals from family and friends. Ask other homeowners about their first time home buying experience. I encourage you to contact me with any questions.
You may contact me at scott@uptownfinancial.com or 612-919-2119
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