Are there any mortgages especially designed for first-time buyers?
Today, first-time buyers enjoy a number of mortgage options that make purchasing a home more affordable by minimizing down payments and keeping monthly payments as low as possible during the early years of the loan. Most ARMs feature an interest rate that is often below market for the first year, and may only rise gradually after that. VA and FHA-insured loans call for extremely low down payment (0-5% of the purchase price), and often offer a below market interest rate. Similarly favorable terms can also be arranged with the help of private mortgage insurance. Finally, first-timers who can find a cooperative seller or third-party investor can look into such nontraditional financing methods as a lease/buy arrangement.
Today, first-time buyers enjoy a number of mortgage options that make purchasing a home more affordable by minimizing down payments and keeping monthly payments as low as possible during the early years of a loan. Adjustable Rate Mortgages (ARMs) feature an interest rate that is below market for the first few years. VA and FHA- insured loans call for extremely low down payment (0-5% of the purchase price). Top of this page Financing Tip Anyone can apply for a FHA mortgage, provided the loan amount doesn’t exceed the maximum allowed by the law. If there is a downside to these loans, it’s the qualifying process. Though you apply for government-insured financing through a lending institution, the Federal Housing Administration or the Department of Veterans Affairs must insure or guarantee the loan and may require specific documentation or procedures not necessarily required for conventional financing. That may take more time than is generally required for conventional mortgage approval. A
Today, first-time buyers enjoy a number of mortgage options that make purchasing a home more affordable by minimizing down payments and keeping monthly payments as low as possible during the early years of the loan. Most ARMs feature an interest rate that is often below market for the first year, and may only rise gradually after that. VA and FHA-insured loans call for extremely low down payment (0-5% of the purchase price), and often offer a below market interest rate. Similarly favorable terms can also be arranged with the help of conventional loan PMI ( Private Mortgage Insurance ) or FHA loan MI P (Mortgage Insurance Premium) . Finally, first-timers who can find a cooperative seller or third-party investor can look into such non-traditional financing methods as a lease/buy arrangement.
