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Best First Time Buyer Loans
Owning a home is part of the American Dream. There are many factors to consider but the one that is on the top of the list of priorities is finding an affordable mortgage. Here are a few loans that you might want to look into:
FHA - An FHA loan is guaranteed by the Federal Housing Association. It provides mortgages for single family and multi-family houses with a low down payment of 3.5%. In Okaloosa County, the loan limit is $341,550.
VA - The Veterans Administration provides loans to active and retired members of the military. A member can buy a loan with no downpayment on the loan itself. Just like any other loan type, there are closing costs that average around 4% of the loan amount. The veteran will pay a one-time funding fee at closing to the VA. This is the usually one of the best ways for a veteran to buy their first home.
USDA Rural Development - Also a great loan for first time home buyers the USDA program allows for 100% financing for first time home owners that have not owned a home in the last three years. There are loan limits per county and restrictions for use in certain areas. To find out more information you can visit the website at https://www.rd.usda.gov/programs-services.
Portfolio Loans - Portfolio Loans are offered by regional banks that have developed their own guidelines for their own in-house loan programs. There are many benefits to a portfolio which may be more forgiving guidelines for borrowers that have had past bankruptcies and short sales in their past. Often they require a larger downpayment than the other loan types we discussed but for those folks that have some money in the bank, they offer a way back into owning a home. An example would be the Affordable 100 plan by Regions Mortgage.
Affordable 100: Offers 100% financing without MI for low to moderate income (LMI) homebuyers or buyers purchasing in a low to moderate income census tract who do not own a home. Primary residence (SFR) with a 30 year fixed interest rate. Sellers can contribute up to 4% of the sales price toward the buyers closing costs/prepaids. If the property needs repairs, they can be escrowed at closing. First-time homebuyers class required. Minimum 680 credit score.
Contact me for more information or a referral to a mortgage professional at [email protected] or 850.685.8595.
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