Houston First Time Buyers Mortgage Information

For many people the American dream involves owning a home. There are a number of programs available to make it easier for those with limited credit, or limited down payment funds, to get a home. These are often called “first-time buyers” plans.

One option is a Federal Housing Authority (FHA) mortgage. FHA doesn’t actually make the loan but they provide a guarantee for the loan. This means that a lender that may otherwise say no will say yes. The rate will also be low because the lender is protected by the FHA if you default. It can be possible to get a FHA loan even if you have no credit listed with the credit bureaus.

Fannie Mae and Freddy Mac also have programs for first time buyers. Each plan has different details but the borrower will typically need at least two years on the same job. A shorter employment time can be possible if there is a total of two years in the same field. You will also need to show enough income to afford the property you want plus your other expenses. As a general guideline, all of your monthly installment costs should be 41% or less of your total household income.

FHA loans require a 3% down payment. With the Fannie / Freddie mortgages it may be possible to get a 100% loan. You will also need about 3% to 4% for closing costs. In some cases the seller will pay all or some of your closing costs. It may also be possible to get a down payment assistance grant to pay all, or some, of your down payment . With the right situation it can be possible to get a home with no cash, or a small amount of cash.

One source of first time buyer’s information is a local realtor or mortgage broker that is knowledgeable about these programs. A good mortgage broker can review your situation and tell you what you could qualify for and what the terms would be. The buying process can be easier if you get a good realtor and a loan broker to work with you.

Texas residents can visit my Houston first time buyer mortgage website for information. Or call my office at 281-537-7800.

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