First Time Homebuyer Myths

By
Real Estate Agent with Coldwell Banker Residential Brokerage MD RE License 579412

First-Time Homebuyer Myths

I am inspired by an article I read this morning to dispel some common myths and misconceptions first-time buyers hold.  

Did you know?  You don't need 20% for a downpayment!!  There are many loan programs available for purchasers and not just first-time home buyers.  You can put 3, 5, 10, 15 20%, or any amount above 3% as your down payment on a conventional loan.  Depending on your lender you may not need to put anything down, some credit unions have a 100% loan program for buyers that qualify.  If you are a Veteran, you may also qualify for a 100% loan program as well.  There is also an FHA loan program with a 3.5% downpayment, this program also has PMI (private mortgage insurance for the life of the loan).  PMI is charged anytime you purchase a home with less than 20% of the purchase price and use certain loan programs.  

If the mortgage requires PMI, you are stuck with it forever.  This simply is not the case.   PMI is not forever!!  Many buyers plan to wait to buy until they have a 20% downpayment.  Depending on the initial mortgage program a homeowner can either cancel the PMI when the principal balance of the mortgage reaches 80% of the current appraised value or they can simply refinance with a mortgage program that doesn't require PMI.

Mortgages that are popular with first-time buyers often allow their relatives or employer to help out with "gift funds".  There are several downpayment assistance programs available in Maryland to help buyers with downpayment and closing costs.  And, some lenders also have programs for buyers.  As #YourRealtorJune for a referral to a lender that can help you with these programs.  

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If you are thinking of buying or selling a home in  Maryland give me a call at 410-292-0100 or start your search here and I'll talk about the market conditions and what your home could possibly be worth in today's marketplace if you are thinking of selling.  If you are considering buying a home, there is no better time than now to buy. The tax savings and wealth building alone are worth the plunge into today's market. Coldwell Banker and I are connected with some of the brightest and best real estate agents in the world and can assist with your move here to Maryland or anywhere in the United States or abroad.  Ask me how.

During these trying times, Coldwell Banker and I are equipped with the latest technology to sell your home using Virtual Open Houses, Virtual showings, electronic signing, virtual inspection, and even online closings.   You can reach out to me through Snapchat, Duo, Skype, Google Hangouts, What's App, text messaging, or simply by phone.  We take your and your family's health and safety very seriously.  

June Piper-Brandon ~ Associate Broker ~ MRP, AHWD, CDPE, ePro

Coldwell Banker

410-292-0100 - Direct   410-461-7600 Office

June Piper Brandon - Agent with Century 21 New Millennium

June Piper Brandon - Agent with Century 21 New Millennium

Comments (2)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello June and great blog to share with the us  information here in the Rain.  Make it a great day!

 

Aug 10, 2022 10:52 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you have a great day.

Aug 11, 2022 02:11 AM