How does a first time home buyer’s loan work?

Share This

Was just wondering how it differed from any other loans out there

Tags:  , , , , ,

5 comments to How does a first time home buyer’s loan work?

  • Flusterated  says:

    Depends…if it’s an FHA loan, then only 3% down payment is required. 1st time home-buyers enjoy tax credits not available to others, depending on your area and/or loan programs. Other than that, they’re about the same.

  • Rohit Sam  says:

    yes

  • Use Your Noodle  says:

    It doesn’t
    A mortgage is a mortgage. You have to qualify for it whether it’s your first time or 20th.

  • real estate guy  says:

    Flusterated” is years behind in her knowledge. FHA is 3.5% down and there are no federal tax credits anymore. Your state my have loans that are restricted to first time buyers and they may have income limits.

    Otherwise, a mortgage is a mortgage.

  • Bob  says:

    The loan itself is no different than loans for 2nd, 3rd or 10th time home buyers, but many states (including California) have programs specifically for first time buyers that provide down payment assistance grants, preferred interest rates or both.
    The programs typically have the following requirements:
    1. Income limit based on county median income for your family size
    2. First time buyer education or counseling
    3. Proof (tax returns)you haven’t owned a home in the past three years.
    They will require you to reside in the home and may provide a grant in the form of a forgivable second mortgage to be used toward your down payment and closing costs. VA and USDA loans do not require a down payment, but if you use FHA or conventional financing with these programs you will be required to provide at least 1% of the purchase price of your own funds for the down payment.
    A link to the California program website is provided below:

    http://www.calhfa.ca.gov/homebuyer/index.htm

Leave a reply