| 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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