Personal Finance Tips » First Time Home Buyers

Zero Down Mortgage Loans for First Time Home Buyers

admin — Tue, 02 Nov 2010 03:31:25 +0000

Being a First Time Home Buyer can increase the difficulty in the process of obtaining finance, not only due to the lack of credit history that it implies but because of the inexperience and lack of knowledge on the field. Following, you will find some tips to help you get started.

The Down Payment Issue

A Down payment in the range of 10% to 20% is usually required for obtaining a home loan to buy a house. There are also closing costs that you’ll need to pay in order to secure the loan. If you add up these two factors, very few can afford putting down so much money.

The financial industry, however, has found a solution to this problem and offers a new financial option. Zero Down Mortgage Loans are meant for those who cannot put away enough money for a down payment. With these loans you can finance 100% of the property’s value. Moreover, for those who cannot even raise the money for closing costs, there are lenders offering 103% or 105% Finance Home Loans. The extra percentage is used for covering the closing costs which will then be included in the overall debt that you’ll have to repay in monthly installments.

Drawbacks of Lack of Down Payment

Zero Down Mortgage Loans sound tempting but though not having to put money down in order to purchase a house can seem to be a fabulous waiver, it has many drawbacks and unless strictly necessary, it should be avoided by all means possible.

A down payment has not only direct positive financial consequences but it also can be a positive factor when the lender has to decide whether to approve your loan or not and on what terms. When the lender has to consider your application, a down payment tells him that if you were able to save enough money to make a considerable down payment, you’ll probably be able to meet your monthly payments without any difficulty.

A down payment will also imply that you have the ability to obtain finance elsewhere and so, the lender will try to offer you a more tempting loan proposal in order to keep you as a client. Those who can offer a down payment always get a considerably lower interest rate than those who cannot.

As you can see, a down payment reduces dramatically the risk implied for the lender in the financial transaction, and thus, you’ll be able to get a better deal on your loan. A down payment won’t only reduce the interest rate you pay; it will also lessen all the other loan requirements and will turn the loan terms more flexible. You’ll be able to get stretchy monthly payments and larger loan lengths too.

Home Equity Loans

If you wanted to use that money for making home improvements or for other expenses, you don’t need to worry. Once the deal is closed, the amount you had to put down will become home equity and you’ll be able to request a home equity loan for the difference between your home value and the amount owed on the mortgage. These loans are secured and carry low interests; they are the perfect solution if you ever need the money you used for the down payment.

Homeowners are Taking Out Mortgages – not to Purchase a Home – But to Boost Their Purchasing Power

admin — Thu, 04 Feb 2010 10:43:21 +0000

Real estate has been an outstanding investment in most parts of Canada in the past few years. Home valuations are continuing to rise and have broken through the peak of their 1989 “bubble” in many areas of the country. That’s good news for Canada’s 7.5 million home owners, who are enjoying an average increase of $43,000 in real estate wealth since the upward trend took hold in 1998.

The hot housing market is being fuelled by mortgage rates which are the lowest they’ve been in almost 50 years. First-time home buyers are finding the rates attractive, and home buyers are lining up to purchase their first home or to upgrade to their dream homes. Housing statistics have been capturing headlines for months and the boom is noticeable on key economic indicators.

But the news isn’t just about rising valuations or Canadians moving into their new homes. Quietly in the background, there is a significant trend to refinancing. Canadians who have built up the equity in their home over the last few years are borrowing against that equity in record numbers. According to a report from a major bank, since 2001, Canadian households have taken out approximately $20 billion in cash out of their homes through mortgage refinancing and home equity loans.

We might thank the Ontario mortgage industry for the surprising resilience of the North American economy. In the past two years, the North American economy has endured numerous economic fallouts but consumer confidence remains reasonably strong – at least partly because homeowners have seen some of their losses offset by an increase in their real estate wealth. We find that we are sitting on (and sleeping in) the best-performing investment we own. And even if they have no plans to sell, homeowners have found that the return on their investment is still as good as cash in the bank.

That cash has been a key economic stimulus both here and in the U.S., where the trend is even more pronounced. As Canadians look beyond the view of a home as primarily shelter, mortgages become a valuable resource – and homeowners aren’t necessarily waiting for renewal time to cash out some of their gains.

So where is the money going? The equity being pulled out is often being used to pay down other more expensive debt. Credit card interest rates are shockingly high and – as a nation – our credit card and other consumer debt is continuing to grow. And much of the money is being used for increased spending. There has never been a better time to borrow against home equity to build the kitchen of your dreams, add a new wing, embark on the landscaping project you’ve wanted for years, enjoy the vacation you’ve always dreamed of, or help with the high cost of post secondary education. However, as always, never let your enthusiasm for the opportunity to spend get in the way of good common sense about debt management.

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admin — Tue, 09 Jun 2009 01:51:05 +0000

ef=”http://www.merchantcircle.com/blogs/FHA.mortgage.FLorida.FHA.Loan.FLorida..954-667-9110/2009/12/FHA-Loan-for-Florida-homebuyers/490482″>FHA mortgage FLorida, FHA Loan Florida, FHA Loan for Florida homebuyers

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FHA Loan for Florida homebuyers FHA loans are backed by the Government and insured by HUD, the FHA loan program is a safe secure way to buy a Florida home!

FHA loan Program Overview

Easier qualification than any other home loan! Lowest down payment’s! Only 3.5% down required! You do NOT have to be a Florida first time home buyer to use the FHA mortgage program! Government Backed Mortgage! HUD Insured! Higher debt ratios for home buyers. Low Interest fixed rate and adjustable interest rates. No income restrictions! Finance single family, condo, town house and mobile homes. Seller able to pay up to 6% closing costs. Down payment gifts and grants allowed!

Apply today at http://www.fhamortgagefhaloan.com/

Have Questions? Fill out a Quick Response form or Call 954-667-9110 or (Apply Now) and get Approved Today.

The FHA loan program was designed for Florida first time home buyers and current homeowners to help keep dream of home ownership alive. The FHA loan is a godsend for many people who would never have thought they would qualify for the purchase of a Florida home. If you’re in the market to purchase a new Florida home or existing Florida home, the FHA loan is a great program for you to consider.

The government FHA Loan is insured by HUD and is designed to make the dream of home ownership more affordable for all Florida home seekers. The FHA loan has underwriting guidelines that are designed to make it easier to qualify for than conventional Florida loans. Since the FHA mortgage is government backed and insured, is comes with lower interest rates and terms that are designed to protect you.

The greatest advantage with the FHA mortgage is the fact it does not ask that you have a great credit score to get the best rate and maximum amount financed. In fact, under FHA guidelines mortgage applicants credit score should not be used as a factor in underwriting an FHA loan. What does this mean for the Florida homebuyer? People with lower credit scores can use the Florida FHA mortgage program to attain 96.5% financing and a great low interest rate! Have great credit? That’s OK, you’ll still get a great low interest rate and you’ll be able to finance up to 96.5% of the purchase price, you wont find that with a conventional Florida home purchase!

So what types of Florida properties may be purchased using an FHA mortgage? Almost any – single family homes, mobile&modular homes, condominiums, town homes To learn more about properties you can finance with our many FHA loan programs, call 1-954-667-9110

Take a look the full range of benefits you receive as a Florida FHA Loan applicant:

Lower down payment options as low as 3% Easier qualification Up to 6% in seller concessions towards closing costs Credit score not a factor – only credit quality 30 year and 15 year mortgage financing terms Higher debt ratios than conventional loans Fully assumable Non-occupying co-borrowers permitted Streamline refinance at a later date Low interest rates compared to conventional mortgage programs Adjustable and fixed rate loan options 2/1 buy down option Everyone is eligible Lowest down payment for an open ended mortgage program – as low as 3.5% (USDA has income caps and significant property restrictions) Rehab a property with a 203k loan Reverse your mortgage during retirement

We are experts in the government backed HUD insured Florida FHA loan and can help guide you through the process of becoming a Florida homeowner! Contact us today to get started! Have Questions? Fill out a Quick Response form or Call 954-667-9110 or (Apply Now) and get Approved Today.