First-Time Homebuyer Loans
Welcome First-Time Homebuyers!
Buying your first home is an exciting and significant milestone. At GenPoint Mortgage, we understand that the mortgage process can seem overwhelming, but we’re here to guide you every step of the way. Here’s what you need to know:
Understanding Your Options
As a first-time homebuyer, you have several mortgage options available to you:
- Conventional Loans: Fannie and Freddie have 3% down programs with lower Mortgage Insurance and typically better rates than regular conventional
- FHA Loans: Insured by the Federal Housing Administration, these loans allow for lower down payments (as low as 0%) and are a great option for those with less- than-perfect credit. Credit scores on FHA can go as low as 580.
- VA Loans: If you’re a veteran or active military, you may qualify for a VA loan, which often requires no down payment, no mortgage insurance and typically lower
- USDA Loans: For rural homebuyers, USDA loans are available with no down payment and lower mortgage insurance costs.
Resources for First-Time Homebuyers
- Homebuyer Education Classes: Learn about the buying process, budgeting, and maintaining your home.
- Down Payment Assistance Programs: Explore local programs that may help with down payments and closing costs.
- Mortgage Calculators: Use our calculators to estimate your monthly payments and see how additional payments can save you money in the long run.
Our Commitment to You
At GenPoint, we pride ourselves on providing personalized service to first-time homebuyers. Our experienced mortgage advisors are here to help you navigate your journey with confidence and clarity.
Frequently Asked Questions
Answers to common questions about First-Time Homebuyer mortgages.
To assess how much house you can afford, experts generally recommend that you spend no more than 28% of your gross monthly income on housing expenses and keep total debt, including housing, student loans, car payments, and credit cards, under 36% of your income.
Various home loans come with different terms and rates, with some requiring lower down payments than others. Use our straightforward mortgage loan amortization calculator to estimate your payments and help determine the maximum home price that fits your budget.
Generally, if you’ve never owned a home before, you are classified as a first-time homebuyer. Additionally, if you haven’t owned a primary residence in the past three years, you may still qualify as a first-time homebuyer. First-time buyers often benefit from significant financing options and flexibility, with down payments starting as low as 3%. FHA loans are especially popular among first-time buyers due to their low down payment requirement of 3.5%.
Pre-approval involves obtaining approval for a specific loan amount before you start searching for a home. The lender reviews your loan documents and commits to a certain loan amount. Having a strong pre-approval can give you an edge, especially if other buyers are interested in the same property.
Closing costs are the fees incurred at the end of a real estate transaction, whether you’re buying or refinancing a home. This final step, known as closing, involves transferring the property title to the buyer. These costs are additional expenses beyond the property’s purchase price, typically borne by both buyers and sellers to finalize the transaction.
For buyers, these costs generally include underwriting fees, appraisal charges, mortgage insurance, homeowner’s insurance, and property taxes.