Monday, June 11, 2012


FIRST TIME HOME BUYER FINANCING OPTIONS



After the real estate meltdown in 2008-9 the financial industry cracked down on their lending standards making it more difficult to get a loan. With theses changes many first time homebuyers assumed that they could no longer qualify for a loan because of the strict standards lenders were adhering to. While it has become more tedious, that doesn't mean it has become impossible. There are many programs available now that can provide borrowers with the assistance they need while not letting them get in over their heads like in the early 2000's. Here are a few options available with the low interest rates banks are providing these days:

I love the Rural Housing Program provided by the USDA. This program is perfect for Eagle County buyers. The Rural Housing Program can assist buyers with down payments but also provide 100% financing in many cases. This program can also provide financing for other closing costs which will fully eliminate or greatly reduce the out of pocket cash a buyer needs to close. 

Another great option is the Community Development Mortgage Program. This will give borrowers less-demanding income and debt guidelines helping borrowers to get a loan even with limited credit history. A great aspect of this program is that it doesn't require mortgage insurance. Many lenders that don't require down payments want some sort of premium to help guarantee their loan, but this program allows for the low down payment without the added expense of Mortgage insurance.

The Federal Housing Authority (FHA) is a great option for many aspects of obtaining a mortgage. They provide assistance for down-payments, refinancing, and easier credit qualifying. Their Teacher Next Door program provides teachers with a great way to buy a home with only $100 down payment.  FHA also has many options for the non-teacher crowd providing up to 97-100% financing on new buyer loans.



These are only a few of the options available for you if you're thinking of making your first home purchase. Please contact me and we will explore the multiple options available for your situation and find the one that fits. Also if you are interested in refinancing your existing mortgage there are many options available to you.  As you can see there is money available for buyers at historically low rates making this NOW the time to buy!











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