Government Programs for First Time Homebuyers
FHA government programs for first time homebuyers reflect the Federal Government's commitment to expanding home ownership and home buying opportunities through reduced down payment requirements,and relaxed underwriting standards when compared to conventional mortgage loans. FHA government programs for first time homebuyers are flexible.
FHA loanprograms recognize many areas as a high cost area and have increased the maximum FHA loan amounts. The FHA loan limits are as follows:
FHA loan high cost areas:
The FHA government program for first time homebuyers is an outstanding choice for first time homebuyers because the program requires only 3% cash (which may be a gift) into the transaction and is significantly more forgiving of past credit issues. We will look specifically at the last two years of your credit history. If there are some credit problems, we may be able to overcome them with sufficient explanations and supporting documents of why the issues occurred. Never rule yourself out of qualifying for FHA loan because of credit, prequalify and have me review your credit. I have more information on government programs for first time homebuyers credit requirements available
This page is focused on the using FHA programs to purchase a home. If your interest is in refinancing an existing FHA or VA loan please go to my refinance center. For extensive information on the FHA 203(k) program to remodel a home please see my renovation loans page.
There are some credit issues that we must allow for a certain time to pass before you can qualify for a FHA loan. They are follows:
FHA requires any outstanding collection accounts, judgments, charge off's be paid in full before closing. If you have had some credit difficulties in the past, compensating factors can often get your loan approved.
If you currently have an FHA loan and are considering refinancing to lower your monthly housing cost there is a simple low cost " FHA streamline" refinance process which you should consider. One of the important features of the FHA program is that the loan is assumable should you sell in the future. If interest rates rise, an assumable mortgage may be the difference between being able to sell your home or not.
Other Government programs for first time homebuyers
FHA offers an adjustable rate mortgage which allows many people to buy a home with very low payments and down payment requirements. Useful if you have a debt to income issue or just want to buy more home.
What is a HUD home? When someone with a FHA (HUD) insured mortgage can't meet the payments, the lender forecloses on the home. FHA then pays the lender what is owed; and HUD takes ownership of the home. Then they sell it at market value as quickly as possible. HUD uses an outside service to sell the homes via a auction format. You must use a Realtor® to purchase a HUD of home. For additional information on buying repossessed homes located on the foreclosure page. For search information on foreclosed homes
I have included a page on how to calculate your qualification ratios.
I have included a page on documentation requirements.
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Prequalify for your Government program for first time homebuyers.