Congratulations! You’re thinking about buying your first home. Purchasing a home comes with many emotions – excitement, joy, nervousness. Don’t worry. Here at Residential Home Mortgage Corporation, we have helped thousands of first-time homebuyers, just like you, navigate the uncertain waters of financing their first home. We’re here to guide you, to explain the different types of loans available and which will be most beneficial.
Are you ready to Mortgage Smartly™? If so, let’s review some key factors that are considered when financing with RHMC.
Loan Type – The features of your loan whether it’s a fixed rate, adjustable rate, backed by the FHA, for veteran’s/ active military or those buying a fixer-upper or in rural markets. We are here to help find the specific loan that is most beneficial to you.
Loan Term – Term is the length of your loan. You can borrow money from 8 to 30 years and anywhere in between. “Term” refers to the amount of time, in years, agreed to pay off the loan.
Interest Rate – The interest you pay on the funds borrowed based on the original principal balance.
Benefits for a First-Time Homebuyer
What are the benefits for a first-time homebuyer? What programs are available to a first-time buyer? These questions are common for first-time homebuyers and knowing your options and benefits is the first step in making the right financing decision.
Some benefits to being a first-time homebuyer include the following:
Reduced Down Payment Options for some programs. You may be able to put down as little as 0-3% for some programs.
Reduced Mortgage Insurance for some programs. You may be eligible to save on your monthly mortgage payment with reduced mortgage insurance premiums.
Down Payment Assistance for some programs. You may be eligible to receive down payment assistance from certain local or state housing programs.
If you’re unsure about your qualifications or have general questions about being a first-time homebuyer, our expert team is here to help you.
Loan Programs for First-Time Homebuyers
As a first-time homebuyer, you will be eligible for most of the common loan programs, including the following options:
Conventional Fixed Rate Loans - the most common of the loan programs and a great loan for those starting out as it allows for a stable monthly payment over the life of the loan.
FHA Loans - another common loan program and an excellent fit for those with a limited down payment and/or limited credit or income.
VA Loans - an excellent loan program as it allows for $0 down payment and no mortgage insurance, but is limited to veterans, active-duty personnel and surviving, qualifying spouses of veterans.
FHA 203K Loans - a great fit for those who are looking to purchase a home in need of renovations or repairs.
Conventional ARM (Adjustable Rate Mortgages) Loans - this program can be an option for those whose timeline in the home will not exceed the fixed period of the loan program (normally 5-10 years).
Ready to Mortgage Smartly™?
If you’re a first-time home buyer, let RHMC partner with you. We have guided thousands of first-time homebuyers over the years to reach their dreams. To learn more about your options and to discuss the loan type that’s best for you, contact one of our loan specialists today.
Complete your quote request today to get started.