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Posts Tagged ‘Mortgage loan’

First Time Home Buyer? Read This!

September 28, 2011 Leave a comment

Hi everyone!

I’ve recently noticed that a lot of my buyer clients are first time home buyers. Every time I help them, I show them this great website called KC Home Programs, and I figured I should tell everyone about it!

If it’s your first time buying a home, you are at a great advantage, because there are lenders, grants, and other programs that offer to help you.

KC home programs, in my opinion, it is the most complete and coherent website that gives you information and links guiding you through the entire process of buying a home, from getting prequalified to closing. They offer articles about finding a home, getting prequalified, the closing process, types of mortgages, and other helpful steps and education to learn before jumping into purchasing your new home.

Here are a few examples of what the programs help with:

Closing cost assistance (typically 1-3% of the sales price)

–Down payment assistance (depending on your mortgage, down payment ranges from 3.5-20%)

–Additional loans for houses that need improvements.

–Special discounts if you are a teacher, firefighter, police officer, or EMT.

If you are thinking about purchasing a home soon, and are a first time home buyer, I encourage you to look at this website. Even if you are well versed in real estate, I guarantee you will learn something new!

http://kchomeprograms.com/program/index.php

Do I need 20% down to buy a house?

A common myth about buying a home is that you need 20% down to buy a home. This scares some people away from ever buying a home. The simple answer is NO, you don’t need a 20% down payment in order to get a home loan.  In this post, I will clarify the 3 different types of loans and how little ‘cash to close’ you actually need.

1. Conventional Loan – A conventional loan is usually 80% of the price, meaning you have to put down 20%, but it’s not the only way. Conventional loans range from 80% – 90% of the sales price of the home. That percentage is also known as the LTV, or the ‘loan to value’ ratio. If your loan is a 80% loan, then you have a 80% LTV.

2.  Federal Housing Administration (FHA) loan – The federally insured FHA loan has a range of 95% – 97.5% LTV, which means your down payment ranges from 3.5% –  5%! A FHA loan is very popular choice. Besides the obvious lower down payment, even people with bad credit or lower-income qualify.  Check out there site and learn how good this deal really is!

3. Veterans Loan – If you’re a United States Veteran, Then you qualify for a VA loan. The Department of Veteran Affairs has a 100% LTV ratio, which means there is no down payment. Yes you read that correctly, this is one of the greatest perks of fighting for our country, come home safely and you’re qualified for a home loan with no down payment!

Check this link out. It has various mortgage calculators, amortization charts, and a ‘rent vs. buy’ calculator. It’s a great resource, and is easy to plug in the numbers before you jump into your big purchase!