There are many home buyer programs available, including the first time home buyer in Arlington Texas. Add to that tons of real estate industry terms to learn and understand, that the home buying process can be confusing and intimidating to some.
In this article, We will explain to you some of the best first time home buyer loans that are available so that you will understand the options and requirements more clearly for the first time home buyer in arlington texas. We are always available as a resource if you have specific questions about these programs or any other home buying concepts, it doesn't cost a penny to call us.
FHA Loans: FHA is by far the most common first time home buyer program available today. The reason for this is that FHA has a very small down payment requirement of 3.5% (ie, $3500 on a $100,000 home), and has flexible underwriting standards (the underwriter is the person who reviews your file and says that you're approved and can get the financing).
Your credit doesn't have to be perfectly clean with FHA. Some lenders will go as low as 580 on your credit score, and just 2 years after discharge of a bankruptcy you can get an FHA loan. An added bonus is that if you need help with down payment or a co-signer, FHA allows family members to help.
VA Loans: If you are a veteran or active duty military, VA is hands-down the best loan program going. Rates are low with VA, and there is no monthly mortgage insurance. Mortgage insurance is an additional insurance policy that helps the lender in case you foreclose on your home. Every other program with less than 20% down payment has mortgage insurance, which adds to your monthly payment. No down payment is required!
To be eligible for VA financing, you must have served and been honorably discharged, or be currently active duty and in good standing. We can help you verify your eligibility quickly.
USDA Loans: USDA is an excellent option if you live in a small town or a rural area. This program also does not have a down payment requirement, and is flexible in underwriting. Don't confuse this loan, however, with agricultural financing. USDA is meant for residential homes in rural areas, not farms.
Conventional: Conventional loans can also be used by first time home buyers, but have slightly tougher underwriting standards than the options I have already mentioned. If you have excellent credit and a 5% down payment, conventional is definitely worth considering.
TDHCA down payment assistance: If you need down payment and closing cost assistance, TDHCA (Texas Department of Housing and Community Affairs) is something to consider. The program will provide a 2nd mortgage that can cover your down payment and closing costs. You must meet income requirements and must be a first time home buyer in order to obtain assistance.
Whichever way you go, a good realtor can help you to figure out the best route for your situation. Be sure you are getting the best advice for YOU and not for the realtor. Being a first time home buyer in Arlington Texas can be intimidating and confusing, but a good real estate agent will help you navigate through the process.
Feel free to give us a call at 817-382-9791 or visit http://buyandsellarlingtontx.com for more information.
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