Can you get qualified? Even without a substantial down payment saved, you’ll find there are programs—such as the FHA loan program—that make it possible for you to become a first-time home buyer.
Make Your First Home Purchase Your Best-Ever Decision
Take advantage of interest rates. There’s no guarantee that interest rates are going to be this low forever. By getting out of the renter’s game and locking in low interest rates, you can begin a lifelong journey of wealth building.
Use less money down than you imagined. The concept of saving up 20% for money down against a loan can scare some first-time home buyers. But we’ll explain why that doesn’t always have to apply to you.
What You Need to Know About First-Time Home Buying
According to some statistics, a majority of renters who want to buy a home don’t move forward because they’re afraid they don’t qualify! But there are plenty of programs that make it viable for lots of people—even those with poor credit—to qualify.
For many first-time home buyers, the main issue is coming up with the down payment. Many of those who would otherwise buy a home feel they would move their purchase timeline forward if they could make the down payment.
With some first-time home buyers’ terms, it’s possible to pay with a relatively small down payment, much smaller than the usually-expected 20%.
Home sales are as hot as ever, with available homes sometimes going off the market in as little as three weeks in some areas—or even less.
Find favorable terms. When you approach it the right way, your first home purchase can be a door to great terms that help you with your monthly budget.
2 Ways to Use Your FHA 203(k) Loan
Buy a Fixer-Upper (and Fix It Up)
Or... Renovate Your Current Home!
Justin was referred to us by my cousin. She highly recommended him. I contacted Justin after my original loan officer gave us a very unfavorable offer. Justin not only went above and beyond in helping us refinance. He was able to get us a lower interest rate and our payment remained about the same with cash out. I was extremely amazed. I know our situation was quite difficult, but Justin was able to navigate us to achieve what we wanted in our refi. I am very glad Justin was referred to us. I will definitely refer my friends and family in the future to use hisÂ company.- zuser2014110711.
Justin was great and extremely knowledgeable in helping me refi my home. He was always available by phone or email and responded quickly! He was also very patient in educating me with all the questions I had as this was my first refi. Will definitely recommend to friends and family goingÂ forward!- chriskeithwong.
Justin recently helped us refinance our mortgage. He is very thorough and incredibly responsive (sometimes he’d respond to our emails late at night, which we didn’t expect but it just shows how dedicated he is to his clients). We had a lot of questions for him throughout the process and he was very patient with us. I would highly recommend him to anyone looking for a mortgageÂ lender.- Annie.
Justin was help me to received a refinance at an incredible interest rate. The work was accurate and the explanation was good. I would like to ask again if there is a chance to buy aÂ house.- Peter lee.
Just completed our case. I’m so happy to write this review about Justin. It has been three times for him to help us not only the first buying but also the second and third refinance. Whenever there is something good issues, he calls us and explain about it very friendly. Speaking this case, he did his best under the difficult situation as we are known Covid-19. It is very helpful for us to save money. Please do not hesitate to contact him. Justin is always waiting for your questions and ready to answer! Truly thank you,Â Justin!- Kevin Lee.
During this difficult time with Covid-19, I have been lucky to have Justin as my loan agent. I sincerely thank him for his genuine effort at all times. I will definitely contact him again in the future before moving to a largerÂ house.- Gloria L.
I don’t know where to begin to talk about Justin and his awesome work ethic. In this line of business I’ve encountered a lot of people on the lending side and the realtor side, some good some bad, but none as great as Justin. Justin went above and beyond on every step of this loan. From the approval to all the things that went wrong, not due to Justin. He was on the phone making calls and writing emails looking out for my best interest. This was not my first time getting a home loan, this was an investment home loan, so that’s why I’m so thrilled with the work performance he provided. It had been a while since I worked with someone like this, and by far Justin has exceeded even my best experience. So if you’re looking for the best rate at the best cost possible and want someone who is going to break things down for you and answer every call or get back to in 5 minutes, then I recommend you give Justin a call and try him out, I promise you won’t be disappointed. Thank you again Justin. Look forward to working with youÂ again.- Albert Loder.
Your Renovation Wish List Could Include...
Increase window size
Bring in more natural light
Finish a basement or attic
Create a mother-in-law apartment or guest space
Correct foundational issues
Protect your investment for the long-term
Add a detached garage when one does not exist
There’s room for everyone
Knock down walls
Open up the floor plan to create versatile, welcoming spaces
Flood-proof your property
Add a retaining wall to prevent expensive damage
Repair the pool
Tired of leaks and cracks? Fix the pool & start enjoying it
Expand or refresh the kitchen
Cooking is just more fun in an updated kitchen
Add square footage
Growing your family? Grow your home alongside it!
How Does a Renovation Loan Work?
Depending on the types of repairs you plan to do, you have two options when it comes to securing a FHA 203(k) Renovation Loan: Limited and Standard.
The Limited 203(k) loan
The Limited 203(k) loan is for non-structural or “cosmetic” repairs. It covers up to $35,000 in renovation costs. With a Limited loan, you can do nearly anything that doesn’t affect the home’s structure! Think kitchen and bathroom remodels, carpet and flooring replacement, painting, appliance replacement, and much more.
The Standard 203(k) loan
The Standard 203(k) loan is a loan for projects with repair costs over $35,000. It can be used for structural or non-structural repairs. With a Standard Loan, you have even more flexibility. You can expand the home’s footprint, improve accessibility for differently abled people, and even move the home to a different site.
What Do First-Time Home Buyers Need to Know About Buying a Home?
Why should I buy a home now and not rent until I can save up a massive down payment?
Because there are plenty of options for lowering your down payment! For example, the FHA loan program, which includes loans insured by the Federal Housing Administration, is great for people with low credit scores and not a lot saved for a down payment. That isn’t to say that you shouldn’t save for a down payment—but remain open to all of the options available.
How will I afford my home?
Pre-approval for a first-time home buyer can be a major step in the process, and it’s easier than you think. A pre-approval is essentially a (conditional) promise from a lender that they can offer you the mortgage terms you need to make an offer on a house. This requires an application process that’s much simpler than you might imagine—and great for first-time home buyers who want to shop around and demonstrate to a seller that they’re serious about their offer.
Should I save for a down payment?
Absolutely. Just because you don’t necessarily have to make a 20% down payment on your first home doesn’t mean that you should eschew the process completely. Having a substantial down payment saved never hurts.
I have a low credit score. What kinds of loan programs are there for me?
If you go through the application process and make sure that your payment is in line with what you can fit within your budget (the typical recommendation is a mortgage that takes up no more than 25-33% of your household budget), then you’ll find it’s possible to afford your first home—and the process may be much simpler than you imagined
How do I get pre-approved?
In addition to the FHA loan program as mentioned in the previous answer, you should also look at your qualification for: the VA loan program, the USDA loan program, and even the Good Neighbor Next Door buyer aid program.
What should I do next?
Simple. Click any of our buttons above and find out if your first time home purchase can be as easy as we say it is here. Don’t worry about a low credit score, either—you’ll find that there are plenty of programs out there that can help.