Buying a house for the first time can be scary or exciting depending on the path you choose to walk. Experts at Clear Lending (https://www.clearlending.com) say that people who don’t do their homework with home mortgage often end up with bad experiences. Irrespective of your income levels, existing debt and the type of property you want to get financed, one always needs to approach this step carefully. Home mortgage isn’t like applying for a personal loan or adding a new credit card to ones kitty. Wrong moves can mean the person would regret the decision for a long time and thus, the need of the hour is to measure your steps.
If you have been searching for first time home buyer loans, you may have come across dozens of loan programs that are available in the market. While conventional loans are easier to get, they don’t always offer you the benefits of rate and ability to borrow even with poor credit history. So if you have a poor Credit Score or don’t get a fat salary, you need to look for other options. Here, we take a look at the top three options for first time home buyers loans.
- FHA Loan – The FHA (Federal Housing Administration) loan program is among the most popular home mortgage programs in the United States. It has benefitted people with low income and high debt to income ratio immensely. As per this loan program, people with Credit Scores between 530 and 580 can get loan with 10% down payment while those with 581 or more as Credit Score can borrow with only 3.5% as down payment. People with Credit Scores below 530 also qualify for this loan program in special cases.
- USDA Loan – This home mortgage program has benefitted thousands of Americans who live in the rural areas. This loan program supported by United States Department of Agriculture is targeted towards people in rural areas who have low or very low income and don’t have other means of home ownership. The program offers up to 100% financing on the property and the most attractive mortgage rates. Property Mortgage Insurance is also low on this and for automatic qualification, one need to have a Credit Score of 581+.
- VA Loan – If you are a veteran or active duty personnel, this is surely the best home mortgage program for you. The loan program offers the most attractive borrowing rates and easy refinancing options. Those eligible for the program can get 100% financing for properties up to the value of $417,000. The Credit Score requirement for this program is also low and you can qualify if you have a score of 530 or more.
Irrespective of your Credit history or the kind of research you have done on first time home buyer loans in the last few weeks, you must work closely with a lending consultant. Experts such as Clear Lending (https://www.clearlending.com) offer you the best advice to gain the most out of your borrowings and also guide you to lenders offering the best rates.
About Author: Joan Gallardo’s 18+ years of experience as Senior Loan Officer allows him to guide loan seekers with the best first time home buyers loans. He regularly writes on first time home buyer programs in Houston and VA Jumbo loans in Texas.
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