Home Loans for First-Time Home Buyers
First-time home buyer lending is flourishing even in this economy, and new programs are being launched. Some of these mortgage loans and down payment assistance programs have particular criteria. Buying a home is probably the largest purchase you will ever make, so you must base your decisions on facts, not rumors.
Buying a home is one of the most important decisions you will ever make. But it’s also one of your most significant financial commitments. Your monthly mortgage payment will be the most significant expense each month, and your lender will love to see proof that you have the funds available to pay it.
You may already know that banks are not eager to lend money to people who cannot pay their bills. But first-time home buyers only have a few options, so they’re often stuck paying high-interest charges as they save up for a down payment on a home. Go to this link and get more details https://www.southernhillshomebuyers.com/we-buy-houses-desoto-tx/ about house buying.
A few programs are designed specifically for first-time home buyers, but they don’t always offer what a borrower needs. Here are a few programs to help you pay your mortgage faster and save money simultaneously.
1.) The Down Payment Assistance Program from Freddie Mac is available through the “Save for a Down Payment” program. This home-buyer assistance program will give you up to $8,000 in no-interest loans to pay a down payment on your new home.
If you don’t have any money saved for a down payment, you’ll also get up to $2,500 on top of this loan. To qualify, you must complete a detailed financial profile and apply online with credit checks performed by Freddie Mac.
The other side of this program is that you’ll also get 0 percent financing for 15 years. If you make your monthly payments as agreed, you won’t have to pay a penny of interest on the principal for the first 15 years. You must complete your down payment in four years, which means you will have to refinance your loan in the fifth year and continue making payments on a new home loan plan.