As a first time homebuyer, you need to be well informed of the options that you can avail. There are a number of great mortgage programs and, in addition, Texas offers a wide range of funding program especially if you would like to renovate your new home. Here we will discuss a few of the grant programs that you could qualify for.
FHA Program For First Time Homebuyer
The Federal Housing Administration is not actually a lender, hence, it is a mortgage insurer established in 1934 to support homeownership within communities. Guidelines are set for accredited FHA lenders to qualify loans that are to be insured.
What’s great about FHA is the low down payment requirement that could amount to just 3.5% at closing. You also have the option to make use of gifted funds. Thus, if your parents or someone you know wanted to help you, they can gift you your down payment.
Conventional 97 Program: Back For Good
The Conventional 97 program is back in full force through the federal home finance agency. Either you are a first time homebuyer or a repeat buyer; you are eligible for the program as long as you have not owned a home in the last three years.
It recently became a more favored option due to its lower down payment of 3%, which can entirely be from gifted funds. Lower household income may also qualify for lower private monthly insurance premium.
FHA vs. Conventional 97: The Better Option
There really is no right or wrong in choosing the best mortgage program for a first time homebuyer. It all depends on your circumstance, credit score, eligibility and loan term. Thus, it is important to get the right guidance from experienced Realtors in your area.
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