First Time Home Buyers Qualify For No Down Payment 100% Financing
Beginning this January, first time home buyers can qualify for No Down Payment 100% Financing through an approved mortgage lender and a grant from the State of Kansas.
How Much Is The Grant?
The State of Kansas first time home buyers program will offer down payment assistance to qualified first time home buyers that equates to 100% Financing.
The non-repayable grant provides up to 4% of the mortgage amount allowing first time home buyers to purchase a home for no down payment. A normal FHA loan requires the first time home buyer to put down 3.5%. With this no down payment 100% financing, the 4% State of Kansas non repayable grant will leave you with 1/2% of the purchase price to use towards closing costs as well. If this 1/2 percent does not cover all of your costs, you are able to negotiate with the seller to pay any remaining amounts.
Do I Qualify?
In order to qualify for the first time home buyers No Down Payment 100% Financing loan, you must be a first time home buyer, meaning that you have not owned a home in the past 3 years. You must have a middle credit score of 640 or better and the maximum debt to income (DTI) ratio cannot exceed 45%. To calculate this, take your total monthly credit obligations, (car loans, credit card payments, school loans, etc) and divide them by your gross monthly income. For example if you make a total of $5000.00 per month and your total monthly credit obligations as found on your credit report are $2000.00 (including the proposed house payment) your debt to income ratio would be $2,000/$5,000 or 40.00%. Your mortgage professional will help you with these calculations.
This no down payment loan does have county specific income limits. If your income exceeds these limits as determined by your lender, you will not qualify. Your lender will review your current income, tax returns, etc and determine if your income is within the maximum allowable income limits for the county you want to purchase a home in. You can find community information here for the areas you might be interested in buying a home.
In the event you don't qualify for whatever reason and you are a first time home buyer that is interested in no down payment 100% financing loans, don't give up! Contact us to discuss the many other options that may be available to you.
What Types of Homes Are Eligible?
First time home buyers that qualify for the no down payment 100% financing loan can purchase new construction or resale homes. The home can be single family or a duplex. Condos and Townhomes do qualify but are subject to additional property guidelines. Multi family homes with more than 2 units are not eligible. You must occupy the home within 60 days to qualify.
Review a Market Report for homes that qualify for first time home buyers No Down Payment 100% Financing loans. The home you will purchase will need to be in move-in condition or you may run into road blocks with your inspections or your appraisal after you have made an offer. If there are any questions or concerns, it is best to check with your mortgage professional before writing an offer to avoid risking thousands of dollars on inspections and appraisals.
How Do I Apply?
Not all lenders are approved for the Kansas first time home buyer 100% financing loan. And to be honest, of the ones that are approved, some are better than others. To find out how to get started on the first time home buyers no down payment loan, contact us for a list of our trusted mortgage professionals who offer the 100% financing loan programs. Beware of pre-qualification vs pre-approvals. There is a big difference and not understanding the difference can leave you frustrated and possibly cost you thousand of dollars.
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If you would like any additional information about first time home buyers qualify for No Down Payment 100% Financing or any other questions on homes, town homes, or condos, please call or text Ron Mowery at (913) 269-0479 or email us at firstname.lastname@example.org