Are there mortgages designed for first time home buyers?
Yes, VA loans and FHA loans (mortgages insured by the Federal Housing Administration) have no or low downpayment requirements which is helpful to many first time home buyers. A VA loan is 0% down and an FHA loan is 3.5% down, however, this downpayment can come in the form of a gift. Additionally Virginia has a home buyer´s program known as VHDA (Virginia Housing Development Authority) geared to helping credit worthy first time homebuyers or those who have not owned a home for the last 3 years. The rates are posted on their website and for buyers who qualify there are 100% financing options. If you are not currently working with a local lender and would like a personal recommendation, please contact me at Liz@HamptonRoadsRealEstate.us. What are points? And what does is mean to buy down a rate? A point is 1% of the entire loan amount and “buying down the rate” essentially means paying points in return for a lower interest rate and hence,a lower monthly payment. Since you are essentially
