Question: Are there any first time buyer programs out there for people struggling with a down payment?
This new program for first time buyers is called the NHF First Down Program. To get to the down payment amount, the borrower ends up applying for a first and second mortgage loan. It works like this… The First Loan
- .5% down payment (normally 3.5% down required).
- FHA Loan
- 30 year fixed
- Owner occupied
- $287,500 loan limit.
The Second Loan (2nd Mortgage)
- 2nd loan covers the 3% difference of the necessary down payment
- 15 year loan at 8.25% interest
- Can be used for closing costs
- Gift funds also allowed for closing costs
I had a buyer ask me what I would recommend, use the program or save up the money. If time is on your side, save up for your down payment and closing costs. One less loan with interest accruing is always the better choice, but for those of you in need of getting into a place soon, this is a great option for you to get started in your own home.
The first step is to get pre-qualified. Then you know how much house you can afford. From that number I can/or your lender can give you an estimated amount for closing costs and down payment. Now you have a number to shoot for. For more specific information on this program, I recommend contacting: Richard Rodarte Certified Mortgage Planner Alterra Home Loans 702-349-9629 RRodarte@goalterra.com Owning your own home is a great investment. Does this sound like the right fit for you and your family in purchasing a home? Contact me today to get started! Photo by Flickr Photo by Tanozzo