Many Americans dream of having their own houses. However, with an increased cost of living and market fluctuations, the dream appears out of reach sometimes. But there is hope because home loans for first-time buyers Conway SC are available from different sources. There are lots of programs out there that help you get a decent loan with a minimum down payment.
How to apply for home loans for first-time buyers
No wonder, if you need to apply for home loans, you have to meet specific requirements based on the type of loan. If you are a first-time buyer, you should be aware of certain things. A first-time home buyer is an individual who doesn’t own a residence for at least three years.
Or, an individual who owned only with a spouse, a person who owned a residence but not associated with a foundation, or a person who owned a property that didn’t comply with the building codes. Furthermore, the buyer has to show proof of income with an adequate amount necessary for monthly payments for the next two years.
Some programs need a minimum of 3.5% as a down payment. Also, the credit score should be at least 620. However, some programs don’t require a downpayment and let you get a home loan even with a low income with a credit score of 500.
What are the recommended home loans best for first-time buyers?
Below listed are the programs for first-time home buyers worth exploring.
- FHA loans
This type of home loan requires a 3.5% down payment. It is one of the most popular home loan in North Myrtle Beach SC and perfect for a first-time home buyer. For an FHA loan, you need a credit score of 500. Moreover, the loan requires mortgage insurance as well. It protects the lender if you default on the loan.
- VA loans
The VA loans require no mortgage insurance or down payment. Besides, they allow borrowers to get a high debt-to-income ratio while qualifying for a bigger mortgage compared to other loan programs. The Department of Veteran Affairs doesn’t set income or credit requirements. But individual lenders have their criteria.
- USDA loans
The Department of Agriculture, US provides a home buyer’s assistance program. But that doesn’t mean that you have to live on a farm to avail of a USDA loan. This program allows 100% financing in rural and specific suburban areas by offering lenders a guarantee against the mortgage.
- Fannie Mae & Freddie Mac
When it comes to home loans, Fannie Mae & Freddie Mac are the leaders. They work with mortgage lenders and offer conventional loan products. Some of them even come with low down payments. Low-income borrowers have a down payment as low as 3% and a credit score of 620.
Conclusion
By now you have understood that there are home loans for first-time buyers. Improving your finances and knowing where you stand will give you an upper hand when choosing the right program for your needs. Keep in mind that first-time buyers can get home loans if they know where to look.
Resources – https://bizidex.com/en/brickwood-mortgage-inc-financial-services-354486
Contact Us:
BrickWood Mortgage
Address:1601 Glenns Bay Rd, Surfside Beach, SC 29575, United States
Phone:(843) 314-4101