Purchase

One of the most exciting adventures you will ever encounter is purchasing a home. As exciting as the process can be, it can also be a very stressful experience without the proper information and guidance of a mortgage professional. The industry is changing rapidly and it’s hard to stay in tune with the programs that are being offered by today’s lenders. Below is some information you will find useful as you take your first step toward your new home.

  • Many factors are considered when applying for a low down payment home loan. These factors include a good credit background, sufficient appraisal value and adequate income to pay the monthly mortgage payment. While these factors are important, other considerations are also taken.

    Your home loan professional and home loan officer will be able to discuss your home loan qualifications, which include your ability to pay the closing costs and your long term ability to pay for the home loan.
  • Loans and gifts from family, friends and other organizations can help you put together a down payment sufficient for your home loan needs. The percentage of the loan or gift that is available for use as a down payment can vary depending on the type of home loan you qualify for. It is important to discuss any loans or gifts you plan to use as a down payment with your mortgage lender.

    Many companies also offer programs to their employees to make the home buying experience easier. 401K plans are often used for this purpose and employees are permitted to withdraw from their 401K plans without penalty to provide a down payment on a home loan.
  • Housing authorities are agencies in cities and states around the nation that handle housing issues in their designated areas. Many housing authorities strive to provide stable and affordable housing for low and moderate income persons and create living environments that help residents learn to live independently. Your mortgage broker is educated about current housing authority issues and can serve as a liaison between you, the borrower and your Housing Authority.
  • Purchasing a home is a goal shared by many people but it can be difficult for some to collect the funds needed for a down payment. Fortunately, there are many national and state-wide assistance programs for those who need help with down payments. Many assistance programs do not require repayment of the gift and do not place caps on the borrower's income to qualify for assistance. One such program is called Neighborhood Gold. This down payment assistance corporation provides free grant money to borrowers with no down payment. The qualifications for the Neighborhood Gold program are relatively simple to meet, and your mortgage lenders are knowledgeable of the requirements.

    Check out our Consumer’s Toolbox for helpful information to guide you through your purchase transaction.
 
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