FIRST TIME HOME BUYER ADVANTAGES
With an FHA loan, the minimum down payment depends on your credit score. If you have a credit score that’s 580 or higher, the minimum down payment is 3.5%
Florida First Time Home Buyer
FHA loans are insured mortgages that require just 3.5% down.
VA loans are no-down-payment loans for borrowers with a military connection.
USDA loans offer financing on rural properties with 0% down.
Fannie Mae and Freddie Mac back conventional loans with just 3% down.
State first-time home buyer programs help programs tailored to the borrower’s location.
Home renovation loans allow you to buy a home and remodel it with one loan.
WHO QUALIFIES FOR FIRST-TIME HOME BUYER BENEFITS?
FHA LOANS
Loans backed by the Federal Housing Administration require just 3.5% down, making them a popular choice among first-time home buyers. According to the most recent federal data, nearly 73% of FHA borrowers put down less than 10% for loans originated 2021. However, if your credit score is under 580, you would be required to put 10% down. Loan limits will vary depending on where you live, with maximums ranging from $420,860 to $970,800 for 2022.
FIRST TIME HOME DOWN PAYMENT ASSISTANCE
Most, if not all, major mortgage lenders offer first-time home buyer loan programs. However, if you’re looking to snag a loan tied to assistance provided by a local or state housing agency, you’ll need to use an agency-authorized lender. While you can technically qualify for an FHA loan with a credit score in the 500s, approved borrowers tend to have much higher scores. From January to November 2021, the average FHA borrower had a credit score of 678, according to data from ICE Mortgage Technology. FHA loans also have an upfront and ongoing additional cost built in mortgage insurance premiums. This protects the lender’s stake in the loan if you default. While you can technically qualify for an FHA loan with a credit score in the 500s, approved borrowers tend to have much higher scores. From January to November 2021, the average FHA borrower had a credit score of 678, according to data from ICE Mortgage Technology. FHA loans also have an upfront and ongoing additional cost built in mortgage insurance premiums. This protects the lender’s stake in the loan if you default.
LET’S LEARN ABOUT MORTGAGE PROGRAMS
Fannie Mae and Freddie Mac Fannie Mae and Freddie Mac are the engines behind the home loan machine, working with local mortgage lenders to offer a range of conventional loan. Fannie Mae’s HomeReady loan handles low-income borrowers with credit scores of 620 or higher (and preferably 680 or higher) and requires only 3% down. One advantage of this kind of loan is that borrowers could qualify to end their mortgage insurance once they’ve built up 20% equity in their home FHA loans, where borrowers can cancel their mortgage insurance after 11 years only if they originally put 10% down. Freddie Mac’s Home Possible loan is another product with a minimum down payment of just 3%. The loan is intended to serve “first-time home buyers, move-up borrowers and retirees,” and borrowers can apply sweat equity or funds from gifts, grants, or loans toward the down payment
