What exact programs are available for First Time Home Buyers?
Answer:
Most programs that are designed for just first time homebuyers do not allow for stated income.
So, you will be looking for a standard loan that is available to all buyers. Depending on your credit scores, amount of down paymentand cash reserves will determine what programs are available to you and their corresponding interest rates.
Also, the type of work and how long you have been employed can make a difference. Usually a "Stated Income" program is for self-employed individuals or those that receive a lot of cash or tips in their income. If you are Self Employed, make sure you have been in the business for 2 years. That will help the qualifying process.
Fixed rates, adjustable rates, interest only and fully amortized loans will all be available to you. Which program you choose will depend on your short and long term goals. Adjustable rates and interest only programs are great if done correctly, but can be very dangerous if you are not prepared.
Do your homework and all shall be good. Feel free to contact me with any more questions or concerns.
There is also a good free report for first time homebuyers at: http://www.first-time-homebuyers-loans.c.
Good luck,
Greg
well the first program is to get you to buy a house you can't afford, the second is to get you into an ajustable rate mortgage, the third is to wait for you to get into a finacial pinch, and the last is to reposess the property keep all your money and sell it to the next cute couple, I hope I've helped.
There is really no significant difference between mortgages for first time home buyers and previous home owners. The only difference is in the qualification. You'll need to prove rental payments for the previous twelve months to take advantage of any benefit. This can be through a property management company or with canceled rent checks. The difference being that a homeowner will have mortgage history on his/her credit report. Call me if you'd like to qualify.
Rick Lanicek
www.primelendingonline.com
NO ADJUSTABLE RATE MORTGAGE! BAD ADVICE!
Find a fixed rate. Also look for Rural Development (if you live in an area where there is rural developmet) and FHA loans. HUD also.
And your past rent really doesnt matter if your income can pay for your mortgage. Make sure your payments are no more they 1/4 of your income.!!
Would you consider delaying your plan? In most area of the U.S., housing price stopped going up as inventory continues to build up. It is normal to see a correction as a boom that lasted for several years.
If you are investing new money in to real estate, this may not be a good time as the potential return on investment is small compare to the high risk of lower home price.
If you are doing a side way move, meaning you are selling one to buy another one, then it is acceptable.
Nothing is absolute, but housing market is very likely undergoing a correction and this is only the beginning. Some say this would be a soft landing (0 to 10%). Some say a big crashing is coming (10 to 20%).
http://money.cnn.com/2006/08/24/news/eco.
http://money.cnn.com/2006/08/23/news/eco.
Buy vs. Rent.
As housing market slump, it is easier to calculate "Rent vs. Buy" scenario. Because "appreciation" is no longer a factor.
Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it.
If interests portion of the mortgage payment is roughly equal to rent of equivalent property, then it is a decent buy.
For example, let's buy a $500,000 condo with 0% down and apply interests only loan (just like renting a place). Mortgage payment would be $3250/month. It is a bad buy, because you can enjoy same property for $2000/month.
Please note that I assume the tax benefits from home cancel out fees from home association and property tax. For more accurate calculation, consult with your CPA or accountant. But NOT your realtor, whom will say anything to get the deal to go through.
And again, if you like a particular property, then paying more may be reasonable. You are the only person who can decide how much more premium you are willing to pay.
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