FIRST-TIME HOMEBUYERS

You would be surprised to know it is not just anyone who has neverowned a home, but anyone who has not had anyownership in a home in the past three years. A first-time home buyer is also single parents, displaced homemakers, and those who previously owned a home that did not meet safety standards. 1st Time Home Buyer loan programs are designed to make homeownership more achievable.  

What do you need to qualify for a 1st Time Home Buyer Loan? 

1. A JOB You need income.  Lenders look for 24 months of income: either W2 income or 1099/self-employment income using tax returns.  If you are a student or don’t have 24 months, we can get around that.  
2. Credit or no credit – we can work with what you have.  550 is the lowest credit score lenders will accept.  Of course, the higher the better.  If you don’t have a credit report, no worries, we can use “alternative” credit like rent, cell phone bills and the like. Don’t let a credit issue discourage you.  See the Credit page for more credit repair strategies.  
3. Debt Ratio 50% or less Debt ratio includes your new mortgage payment and the minimum payments showing on your credit report. Lenders don’t care about what your grocery bill is or cell phone for example.  A licensed Mortgage Loan Originator can help you calculate your debt ratio.  
4. Down Payment this is your skin in the game. It is a myth you need 20% of the sales price for a down payment.  We have loan programs designed for first-time home buyers with as little as 1%, 3%, 3.5% or 5% down.  We even have a zero-down loan program.  
   First-time Home Buyers also are eligible for Down Payment Assistance Programs that not only help with down payments, but closing costs, funds to buy down the rate, appraisal fees, and more. Over half the Down Payment Assistance Programs are forgivable!  These are Grants you don’t pay back.  The second have include low/no-interest second Mortgages that are many times deferred, meaning they are paid sometime in the future.  Often, deferred loans are paid back when you sell the home.  
5. Assets Two months of bank statements (can be 401K/IRA account) showing cash you have for reserves. Lenders want to see that you have money somewhere to make the payment if you lose your income.  “Mattress money” needs to be deposited into a bank account at least 60 days before you start a loan transaction.