First Time Homebuyers
We have worked extensively with First Time Homebuyers over the years. We have become experts at helping first time homebuyers understand the home buying process and obtain access to all the available programs, down payment assistance, and education to make their first home buying process easy. Below we will walk you through a few things to know as you are preparing to purchase your first home.
Who Is Considered a First Time Homebuyer?
Being considered a First Time Homebuyer doesn't necessarily mean that this is the first home you purchased. Here is the definition of those who are considered to be First Time Homebuyers.
A first time homebuyer is defined as someone who meets the list of requirements listed below:
- Wants to purchase a home that they will reside in as a primary residience.
- Someone who had no ownership in a home over the past 3 years.
- A single parent / recent divorcee can be considered a first time homebuyer if they had no ownership in a home over the past 3 years with exception to the one that they had co-ownership of with a spouse.
Some of the most well known First Time Homebuyer programs available are Fannie Mae's HomeReady, Freddie Mac's HomePossible, and Freddie Mac's HomeOne. We will go into detail about the similarities and differences of each of these programs.
Why Choose a First Time Homebuyer Program?
First Time Homebuyer programs have several significant benefits over a regular mortgage loan. Here are a few:
- Ability to put down as little as 3%.
- Mortgage Insurance premiums are lower and more favorable.
- Interest rates are lower and fees are less.
What Are The Limitations?
Each First Time Homebuyer program has different requirements as well as limitations.
- Income Limits - Typically your income needs to be below a certain limit. Many programs use 80% of the Area Median Income or the AMI that is determined by HUD and based on the location of the property you want to purchase.
- The best programs typically required you have a 700 credit score or better.