Copper Valley Restoration Services

Damage Restoration | Water | Smoke

  • Home
  • Water Damage
    • Flood Repair
    • Hot Water Heater
    • Bathroom Flooding
  • Fire Damage
    • Cleanup
  • Smoke Damage
  • Refinishing
    • Bathroom
    • Wood Renewal
  • Real Estate
  • Contact
  • Clayton NC

Pros and Cons of First-Time Homebuyer Loans

Posted on March 24, 2014 Written by webmaster Leave a Comment

Browsing the range of home loans to locate the one that best meets your needs can be hard, especially if this is the very first house you’re buying.

To make things simpler, the government and many states offer insured home loans tailored to first-time homebuyers. These loans offer alluring advantages that could make the home-purchasing experience less expensive and less prohibitive. Nevertheless they aren’t for everyone.

What’s a First-Time Homebuyer Loan?

simple-beach-houseA first-time homebuyer loan is a mortgage tailored to individuals buying their first house. While definitions of first-time homebuyer vary, it’s typically someone that has never been listed on a title as the owner of property. Make sure you affirm this with the loan provider when looking to obtain this type of loan.

First-time homebuyer loans offer a low down payment, reduced interest, small fees as well as the possibility of deferring payments. These types of loans can be obtained in a national level by the Government’s Federal Housing Administration and by the majority of states.

FHA first-time homebuyer loan programs offer simpler qualifying guidelines than many other loan types. These loans enable higher debt ratios, lower credit scores, reduced closing costs and fees and restricted down payments–commonly around 3.5% of the price.

Likewise, many state loans for first-time homebuyers are funded by the federal government. Most offer low rates of interest, comparatively smaller down payment requirements and decreased fees. http://homesforsalejohnstoncounty.com/

Pros of First-Time Homebuyer Loans

The comparatively lower limitations on such loans make them perfect for first-time homebuyers.

You should consider these loans if:

  • You do not have enough cash saved up to get a big deposit.
  • There is a limited capability to match high interest payments and charges.
  • Your credit score isn’t high enough to qualify for other loan types.

However even should you have funds saved to get a sizeable down payment, the low interest rates on first-time homebuyer loans could be too great to pass up.

Disadvantages of First-Time Homebuyer Loans

If you are thinking of buying a really high-priced house in an affluent area, you may have to look elsewhere. On Jan. 1, the federal Housing and Urban Development department reduced the “national ceiling-loan limit” to $625,500 for most affluent of regions. Loan limits vary with respect to the median income in that area, so be sure to talk with your agent or lender.

Another potential drawback is the requirement the home you purchase will be your principal area of dwelling. Put simply, if you’re looking to purchase the property with the intent of renting it out, you likely won’t qualify for the loan.

Several other potential drawbacks comprise:

  • Should you sell your house soon after buying it, you might lose several of the loan benefits.
  • If you need to refinance at a subsequent date or otherwise alter the conditions of your debt or your security, this may not be possible with a first-time homebuyer loan.

While some of these loans do not demand you to purchase private mortgage insurance, you might be necessary to take out insurance supplied by the loan program, and this insurance policy could have higher fees and longer payment conditions than a private insurance option.
Despite these drawbacks, a first-time homebuyer loan could be the most appealing kind for you personally. Take a step back, assess your financial situation, look at the house you are thinking of buying and consider your alternatives.

For the best Clayton real estate, give Teresa Byrd a call today!

 

Filed Under: Clayton NC

  • Home
    • Terms Of Use
    • DMCA Policy
    • Fencing Raleigh NC
    • Vinyl Siding Knightdale NC
    • Contact
    • Privacy Policy
    • Water Damage
    • Fire Damage
    • Smoke Damage

Poll

What do you think is the most damaging?

View Results

Loading ... Loading ...
  • Polls Archive

About us

We specialize in restoration services of all sorts. From fire and smoke to water and mold, we can take care of just about any problem you may have.

Recent Posts

  • Three Clever Home Improvement Ideas To Remember
  • Enliven Your Outdoor Patio With A Fresh Color Scheme
  • Transform Your Garden By Having Right Garden Furniture
  • Wooden Fence Maintenance and How To Do It Right
  • Shipping Containers and What it Takes to Organize Your Home

Categories

  • Cleanup
  • Water Damage
  • Clayton NC
  • Bathroom
  • Wood Renewal
  • Fire Damage
  • Bathroom Flooding
  • Refinishing
  • Real Estate
  • General
  • Home Tips
  • Junk Removal
  • Pest Control
  • Storage Units

Legal Pages

  • Real Estate
    • Hardwood Flooring
    • Maid Services
  • DMCA Policy
  • Terms Of Use
  • Privacy Policy

Copyright © 2023 · Focus Pro Theme on Genesis Framework · WordPress · Log in