First Time Home Buyer Loan Options

Buying your first home is a significant milestone, and although it is exciting, it can sometimes seem very overwhelming because of the many different factors involved. Since purchasing a property requires a great deal of research and preparation, connecting with people who are familiar with the process can prove to be very helpful. If you are ready to buy your first home in the areas of Palm Beach, Tri-County, or Broward County, Florida, CTC Mortgage is here to help. Continue reading to learn more about loan options available for first time home buyers.

The Essentials To Understanding A Mortgage

Saving up enough money for a down payment on a property can be one of the most intimidating aspects of buying a home. When a potential home buyer begins looking for, affording, and finalizing the purchase of a home, it is crucial to review your current financial status and objectives. If you are buying a home for the first time, improving your credit score and saving funds should be a high priority. Luckily, there are a variety of programs available to first time home buyers that can help them obtain financing for a property. CTC Mortgage can work closely with you to help understand the programs and determine which one works best for your situation, and also discuss the aspects of mortgage terms, down payment, interest rates, and closing costs so you can determine your eligibility for each program.

Programs For First Time Home Buyers

In real estate, there are two types of mortgages; conventional loans and non-conventional loans. Conventional loans are not insured by the government and are available through a private lender, while non-conventional loans are backed by the government, therefore lower down payments and less strict credit requirements. Subsequently, non-conventional loans are a common option for most first time home buyers. Two popular non-conventional loan types that help first time homebuyers are:

• FHA loans – These mortgages are backed by the government sector of the Federal Housing Administration. They help first time home buyers obtain financing by allowing borrowers with a lower credit score buy a property with a down payment as low as 3.5%. These accessible qualification requirements make an FHA loan a great loan option for a first time home buyer.
• VA loans – These loan types are intended to help a borrower or their spouse that has served or is currently serving in the military become a homeowner. A VA loan is another non-conventional mortgage backed by the division of government known as the U.S. Department of Veterans Affairs. This is another great option for first time home buyers because a VA loan does not typically require a down payment and comes with low interest rates for qualifying military service people and veterans.

If you are a first time home buyer in Palm Beach, Tri-County, or Broward County, Florida, contact CTC Mortgage for a consultation.