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Many home loan programs have been specifically created for first time home buyers. These loans feature low down payments and approval guidelines that make it easier to qualify. Some of the more popular first time homebuyer programs are listed below. To get started immediately click here for our on-line application.
Return to Loan Programs
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Many people dream of owning a home but the home loan process can be confusing for many first time home buyers. Mortgage lenders offer first time buyers with many home loan options and assist the buyer in finding the best home loan for them. First time home buyer programs can offer lower interest rates, low down payments, or reduced taxes.
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First time homebuyers often experience the most difficulty amounting a significant down payment and everyone should have the opportunity to buy a home. For this reason the Federal government has developed two loan programs to assist homebuyers that have a little or no down payment. These programs are called the Federal Housing Administration (FHA) and the Veteran's Administration (VA). These programs are not solely intended for first time home buyers; your home loan advisor will be able to determine if you qualify and if so which program is acceptable for your needs.
Connecticut Housing Finance Authority (CHFA) mortgages are for first-time homebuyers purchasing a home anywhere in the state of Connecticut or prior homeowners purchasing in a targeted area of the State. Prior homeowners who have not had ownership interest in a primary residence for the past three years are also eligible. Income and sales price limits apply to CHFA mortgages and you must reside in the home you purchase. CHFA mortgages have a fixed interest rate which is generally lower than regular conventional mortgage rates. CHFA also has a second mortgage loan program available for Down Payment Assistance (DAP) and closing cost assistance.
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First time home buyer programs are designed to help borrowers who may not have enough money to pay the full cost of the down payment or the closing costs on a mortgage. These programs make obtaining a mortgage more cost effective. There are even programs specifically for residents of each state. First time home buyer programs are available to those who have not owned a home for the past three years.
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Community homebuyer programs reduce the down payment the borrower must pay to 3%, which must be the borrower's own funds. The closing costs can be gift funds, a grant, or seller assistance up to 3% of sale price. This type of home loan requires the home buyer to take a class on home ownership in their state. Upon completion of the class, the homebuyer will receive a certificate that reduces the cash requirement and expands the qualification ratios. Community homebuyer programs have been making it possible for many people to have the opportunity to buy a home.
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Escrow is a deposit of funds, a deed or other instrument by one party for the delivery to another party upon completion of an event. In simpler terms, escrow is where the transaction changes hands and prevents the seller from not receiving the money from the sale and prevents the buyer from not receiving the home that was purchased. Escrow is important to both buyers and sellers during the mortgage process.
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A Mortgage Credit Certificate or MCC is a certificate awarded by your local government agency authorizing the home loan borrower to take certain federal income tax credits. The credits awarded help to free up funds and make the monthly home loan payments more affordable for the homeowner. First time home buyers are typically the candidates eligible for an MCC but in special cases that you may discuss with your home loan advisor this requirement may be waived. Income and purchase price requirements also vary state to state and should be covered in conversations with your home loan representative.
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At Traditional Mortgage of New England, Inc. our Connecticut mortgage brokers offer a wide variety of first time buyer programs to Connecticut first time buyers. First time buyer programs in Connecticut can make securing a Connecticut home loan easier and more affordable. Contact your Connecticut mortgage lenders at Traditional Mortgage of New England, Inc. to begin your first time buyer loan.
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