| One
of the most exciting adventures you will ever
encounter is purchasing a home. If you're a first
time buyer or an experienced investor we will
make the process quick and easy. Below is some
helpful information to get you started. To get
started right away click here for our on-line
application.
Many
factors are considered when applying for a low
down payment home loan. These factors include
a good credit background, sufficient appraisal
value, and adequate income to pay the monthly
mortgage payment. While these factors are important
other considerations are also taken.
Your home loan professional will be able to discuss
your qualifications with you on an individual
basis. At this time other factors including your
ability to pay the closing costs will be discussed.
Closing costs are typically 2% to 3% of the price
of the house. Your home loan officer will also
discuss with you certain formulas that are used
to determine your long term ability to pay for
the home loan.
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Loans
and gifts from family, friends, and other organizations
can help you put together a down payment sufficient
for your home loan needs. The percentage of the
loan or gift that is available for use as a down
payment can vary depending on the type of home
loan you qualify for. It is important to discuss
any loans or gifts you plan to use as a down payment
with your mortgage lender.
Many companies also offer programs to their employees
to make the home buying experience easier. 401K
plans are often used for this purpose and employees
are permitted to withdraw from their 401K plans
without penalty to provide a down payment on a
home loan. Making use of your 401K program can
be useful and beneficial but there can be drawbacks
that must be examined.
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There
are national non-profit organizations dedicated
to assisting homebuyers with their down payment
and closing costs.
Housing
authorities are agencies in cities and states
around the nation that handle housing issues in
their designated areas. Many housing authorities
strive to provide stable and affordable housing
for low and moderate income persons and create
living environments that help residents learn
to live independently. Your mortgage broker is
educated about current housing authority issues
and can serve as a liaison between you, the borrower,
and your Housing Authority.
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Purchasing
a home is a goal shared by many people but it
can be difficult for some to collect the funds
needed for a down payment. Fortunately, there
are many programs to assist those who need help
with down payments. There are national assistance
programs and programs specifically for residents
of your state. The precise requirements of the
individual programs will need to be discussed
with your mortgage broker but many assistance
programs do not require repayment of the gift
and do not place caps on the borrower's
income to qualify for assistance. One such program
is called Neighborhood Gold. This down payment
assistance corporation provides free grant money
to borrowers with no down payment. The qualifications
for the Neighborhood Gold program are relatively
simple to meet and your mortgage lenders are knowledgeable
of the requirements.
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