Buying your first home is a very exciting step! Montezuma Mortgage team members are here to guide you every step of the process.
Before shopping for a new home we’ll educate you on the process, get you pre-approved, help you understand your purchasing power, and go over all your different loan options in depth using our powerful loan presentation software. We can also match you with a trusted real estate agent if you’re not already working with someone. We’ll explore if a conventional, USDA, or FHA mortgage is best for you. If you qualify for a VA loan then we already know that is likely your best option. Many of these options can be combined with local down payment assistance programs but those have their pros and cons. We’ll help explore how these different options might affect your personal financial situation.
First time home buyers have a lot of questions and our brokers are always available to provide personal attention so don’t hesitate to ask for as much assistance as you need. They can explain the application process, provide tips to use during your home search, and make sure that you find the perfect home for your needs and budget.
Popular Loan Programs for First-Time Home Buyers:
30-Year Fixed Conventional 3% Down HomeReady or HomePossible
If you make less than the income limits for these programs you’ll qualify for special adjustments that will ensure you get a little better interest rate. These programs are affordability programs and aim to make home ownership more affordable for certain income levels.
30-Year Fixed Conventional – 3% Down (No income limits)
lf you make more than 80% of the area median income you can still get a low down payment conventional loan. With excellent credit this is a great option for many new home buyers that make more than the affordable housing program income limits allow. These programs still have excellent interest rates, but they will always be slightly higher than a rate offered on Fannie Mae’s HomeReady or Freddie Mac’s HomePossible.
30-Year Fixed USDA Rural Development Loan (Income Limits Apply)
lf you make less than the USDA income limits for your area you may qualify for a $0 down USDA mortgage. The USDA rural development loan is available in certain rural areas for borrowers making less than a certain amount. That amount changes regularly but can easily be looked up by searching Google. In eligible rural areas the USDA mortgage is an excellent option to provide home buyers with a low cost mortgage without a down payment requirement.
Great for a buyer than want’s to put less down, but may not qualify for a conventional loan. Additionally, FHA loans can be a more cost effective option than a conventional loan in certain circumstances. We’ll explore the math to see if conventional or FHA is right for you.
An amazing deal for veterans and military members. Those who qualify for this loan can purchase with no down payment and no PMI. A VA loan is almost always the best option for anyone that is eligible, and buying a property as a primary residence. Find out today if you qualify!