First Time Home Buyer Loans - A Myth?
So, you're a first time home buyer and you are looking for mortgage loan programs designed specifically with first time buyers in mind. If that's the case, my advice is too keep an open mind and don't get frustrated by your search.
Due to the current state of the economy, the so-called first time home buyer loans are becoming a thing of the past. Sure, there are still home buying grant programs offered by most states. But lenders today don't offer many loan programs designed for first time buyers specifically.
But don't be discouraged. While it may be hard to find a specific program that offers loans for first time home buyers like yourself, you can certainly qualify for a regular mortgage loan. Just don't expect special treatment from lenders -- not in the current economy, at least.
In fact, it's actually harder to quality for a loan today than in the recent past. This comes from increased restrictions placed on mortgage lenders in the wake of the subprime mortgage crisis. You need a better credit score to qualify for a home loan these days, whether you're a first time buyer or not.
I'm not writing this blog post to rain on your parade with gratuitous negativity. On the contrary, I'm trying to save you some time and energy. If you start scouring the Internet looking for information on home loan programs for first time buyers, you will quickly become frustrated.
When I do such a search, I find plenty of people talking about these programs, but nobody seems to know where to find them. There are plenty of "fluff" articles about first time home buyer loans -- there just aren't many programs listed within these articles. That's because the authors can't find these programs either. It's like writing an article about Bigfoot or some other mythical creature, and not providing a shred of evidence as to its existence.
If this is your first time buying a home, and you need a loan to help cover the cost of the home, here is my advice to you.
Don't be discouraged by what I'm telling you here. While there may not be as many programs designed specifically for first time home buyer loans, you can still qualify for a mortgage (and get a good interest rate on it) if you are otherwise qualified.
In other words, you won't get preferential treatment for being a first-time buyer ... you certainly won't be penalized for it either. Lenders will qualify you based on your credit score, your income, your debt and other factors. If you measure up well in those departments, you should have no trouble getting a loan.
Related articles:
Due to the current state of the economy, the so-called first time home buyer loans are becoming a thing of the past. Sure, there are still home buying grant programs offered by most states. But lenders today don't offer many loan programs designed for first time buyers specifically.
But don't be discouraged. While it may be hard to find a specific program that offers loans for first time home buyers like yourself, you can certainly qualify for a regular mortgage loan. Just don't expect special treatment from lenders -- not in the current economy, at least.
In fact, it's actually harder to quality for a loan today than in the recent past. This comes from increased restrictions placed on mortgage lenders in the wake of the subprime mortgage crisis. You need a better credit score to qualify for a home loan these days, whether you're a first time buyer or not.
I'm not writing this blog post to rain on your parade with gratuitous negativity. On the contrary, I'm trying to save you some time and energy. If you start scouring the Internet looking for information on home loan programs for first time buyers, you will quickly become frustrated.
When I do such a search, I find plenty of people talking about these programs, but nobody seems to know where to find them. There are plenty of "fluff" articles about first time home buyer loans -- there just aren't many programs listed within these articles. That's because the authors can't find these programs either. It's like writing an article about Bigfoot or some other mythical creature, and not providing a shred of evidence as to its existence.
My Advice for First Time Buyers
If this is your first time buying a home, and you need a loan to help cover the cost of the home, here is my advice to you.
- Don't expect special treatment from a lender just because you are buying your first house. You just won't find it, not in this economy.
- Instead, focus on boosting your credit score as much as possible. If you already have a good score, do everything you can to maintain it. Learn more here
- Start putting extra cash away each month. Your first time home buying experience will likely cost more than you think, so start preparing for it now by saving money. Those extra cash reserves will also help you get qualified for your home loan in the first place. Lenders like to see that you have sufficient cash reserves.
- Research the different types of home loans and choose the best one for your situation. This is an area where many first time buyers make mistakes. Pay particular attention to the pros and cons of fixed-rate versus adjustable-rate mortgages. Learn more here
Don't be discouraged by what I'm telling you here. While there may not be as many programs designed specifically for first time home buyer loans, you can still qualify for a mortgage (and get a good interest rate on it) if you are otherwise qualified.
In other words, you won't get preferential treatment for being a first-time buyer ... you certainly won't be penalized for it either. Lenders will qualify you based on your credit score, your income, your debt and other factors. If you measure up well in those departments, you should have no trouble getting a loan.
Related articles:
Labels: Home loans
posted by Brandon at
10:07 AM
