First Time Home Buyer

The term says it all, it is the first home purchased by an individual or couple. Due to the “American Dream” of homeownership, most lenders are more lenient when coming to decisions on whether to lend money to first time home buyers or not.

The VA approves more than 9 out of 10 Veterans for first time homeownership, most with no money down. FHA allows first time homebuyers to put down as little as 3% and receive up to 6% towards closing costs. If little or no credit exists for the applicants, the FHA will allow a blood relative, such as Mom or Dad, to co-sign for the loan without requiring them to reside in home with First Time Homebuyer. This is called a Non-Owner-Occupied Co-Borrower. Depending on the state you reside in, you may receive a discount on your State Transfer Taxes at settlement. In Maryland, it is as much as $300.

Documentation needed for FHA Loans:

• A two year history of employment in the same field is required
• If you are a recent college graduate, your last two years of schooling can be used if you are currently working in your field of study
• Credit Scores normally need to be above 620 for Conventional financing-580 for FHA and VA looks at a case by case basis
• If no credit history exists-you may use cell phone bill, cable bill, previous rental history, etc. to establish a “pattern” of good credit payments
• Proper ID as defined by the Patriot Act (State Driver’s License or Birth Certificate along with a copy of your Social Security card required)
• Debt Ratios should be below 36/46

 

Tell us the amount you're looking to borrow in our one minute mortgage appliciation form.