Financing for First Time Homebuyers

By
Real Estate Agent with EXIT Strategy Realty 475154983

At a recent homebuyer seminar I conducted with a couple other real estate professionals, we discovered there were several misconceptions among potential first time homebuyers in regards to homeownership. Of these, the most common of which were needing a prime credit score of 700+ and requiring at least a 20% downpayment. While this may be true to get a better mortgage rate and avoid private mortgage insurance, it is not a necessity to be qualified for a mortgage.

 

With the cost of education and student debt both rising, most individuals simply don't have the means for a 20% downpayment. Fortunately for them, there are other options

 

Homebuyer Financing Incentives*

FHA 3.5% Downpayment

Conventional 5% or 10% Downpayment

IHDA Illinois Welcome Home Loan $7,500 Downpayment Assistance

 

 

*For specifics or other available options you should speak with an experienced lender to find the best solution for you. Need a referral? Contact me below. 

 

Home Seller Incentives

In conjunction with financing assistance, many seller's and their agents are offering incentives to both entice and make homeownership easily affordable for a first time homebuyer. These incentives include, but are not limited to: painting, repairs, closings costs, paying for an inspection etc. 

 

Real Life Example

I have a listing here in Chicago's South Loop Neighborhood. Here, a 1 Bed/1Bath condo for $225,000 is a prime property for a first time homebuyer. To help them realize their goal of homeownership we are offering up to a $5,000 closing cost credit. Coupled with the $7,500 downpayment assistance mentioned earlier, a first time homeowner could recieve up to $12,500 at closing. 

 

 

1600 S Indiana #610 Chicago, IL 60616

 

For more information on financing for first time homebuyers, please contact or connect with me on social media below. 

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Brad Magnant 
Call/Text: 630.797.0196
EXIT Strategy Realty
 
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Comments (1)

Diana White-Pettis
Bennett Realty Solutions - Upper Marlboro, MD
GRI, CDPE, CNE, WHC Upper Marlboro Homes for Sale

I'm sure the first time homebuyers were glad to have their misconceptions clarified.  It makes a huge difference when they are educated about the true financing options.  Great post!

May 12, 2014 05:11 AM