Programs for First time Home buyers
- MHDC assistance
The First Place Loan program offers first-time homebuyers and qualified veterans affordable mortgage financing, often at an interest rate lower than market rate loans. Homebuyers may also be eligible for a Non Cash Assistance or Cash Assistance Payments. Cash Assistance Payments may be applied at closing to a portion of the down payment and allowable closing costs.
- FHA Home Loans
The FHA mortgage program was created to make home ownership accessible to more people, and is administered by the US Department of Housing and Urban Development (HUD). FHA does not actually lend money; it reimburses FHA lenders when borrowers default on FHA home loans. This reduces the lenders' risk, which makes them more willing to loan money, and keeps borrowers' costs down. FHA mortgage lenders offer a variety of home loans designed to meet many needs, including:
- Mortgages to purchase single-family homes, condominiums and 1- to 4-unit multifamily homes (203(b) loans)
- Mortgages for manufactured or mobile homes (with or without land)
- Mortgages to rehabilitate or improve a home that you already own, or one that you plan to buy (203(k) mortgages)
- Refinance mortgages, whether or not your current loan is with FHA
- Reverse mortgages, called Home Equity Conversion Mortgages or HECM
FHA mortgages are especially well-suited to meet the needs of borrowers who need to finance more than 80 percent of their home’s purchase price or appraised value. They carry advantages and drawbacks that you should be aware of before you decide that an FHA mortgage is right for you.
- FHA 203k
FHA 203k loans are designated for houses that are damaged or sorely in need of rehabilitation. The loan covers not only the cost of the property but also the cost of necessary home repairs. The down payment requirement is low, and eligibility criteria are loose. Homeowners whose homes need improvement can also refinance with these loans. A vast range of repairs, including room additions, bathroom remodeling, roofing, flooring and air conditioning systems can be funded with these loans.
- USDA LOANS
A USDA loan (also called a Rural Development Loan) is a government insured home loan that allows you purchase a home with NO Money Down. USDA Home Loans offer 100% financing to qualified buyers, and allow for all closing costs to be either paid for by the seller or financed into the loan. USDA offers some the lowest rates of any loan, and you will always have a fixed interest rate.
- VA LOANS
VA loans are home loans for the purchase of a primary residence available to consumers who have served or are presently serving in the U.S. military. While the Department of Veterans Affairs (VA) does not lend money for VA loans, it backs loans made by private lenders (banks, savings and loans, or mortgage companies) to veterans who qualify.
There are many benefits to a VA loan. As taken directly from the Veterans Affairs site:
- No down payment required (unless required by the lender or the purchase price is more than the reasonable value of the property).
- Buyer informed of reasonable value.
- Negotiable interest rate.
- Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5 percent and exemption for veterans receiving VA compensation).
- Closing costs are comparable with other financing types (and may be lower).
- No mortgage insurance premiums.
- An assumable mortgage.
- Right to prepay without penalty.
- For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder.
- VA assistance to veteran borrowers in default due to temporary financial difficulty.
- Coventional Loan
Thirty year fixed rate loan - Loan monies are calculated over a thirty year payback making 360 equal payments. The payment includes the principal of the loan and the interest.
Fifteen and Twenty year fixed rate loans - Both the fifteen and the twenty year loans are the same as the thirty year fixed rate loan. However, the interest rate will be a little less than the thirty year interest rate, and the borrower will pay off the loan faster.
Adjustable rate loan - Commonly referred to as an ARM. This loan adjusts its interest rate according to the terms of the loan, which could be every year. There are many variations to this type of loan. Your Mortgage Broker should advise you when this loan would be appropriate for your situation.