4 Things You Need to Know About First Time Homebuyer Loans
LOS ANGELES, Dec. 27, 2012 /PRNewswire-iReach/ -- RealtyPin.com's mortgage center has a near-endless array of home loan options. However, if you're diving into the homeownership pool for the very first time, a first time homebuyer loan might be the best way for you to finance your purchase. Here's what you need to know:
1. They're not for every first time home buyer
Don't let the name confuse you. Just because you're a first time home buyer doesn't mean one of these loans is right for you. Ultimately, you'll have to decide if a first time homebuyer loan is the best option for your specific needs. Be sure to compare it to other financing options that "traditional" buyers would use. The last thing you want to do is wind up dealing with more rules than you have to! Are the rules really that bad? It depends on your lender. Originally, first time homebuyer loans were created to help low- and moderate-income people buy homes. And, in many cases, there are still income thresholds that you have to meet to qualify for one today. In exchange for getting a "break", these loans can come with rules that traditional loans don't. Only you can decide if those rules are something you want to deal with.
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2. Your home may not qualify
Just because you're a first time homebuyer doesn't mean you will automatically qualify for one of these loans. In most cases, your home has to cost less than a specific amount for you to get the loan. (That amount typically depends on the lender giving you the loan.) So, if you're planning on buying a house in the most expensive neighborhood in town, you probably won't get to use a first time homebuyer loan to finance it!
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3. Some benefits are specific to these types of loans
Because they work a little bit differently, first time home buyer loans come with some perks that you won't find on other types of loans. Like what? Depending on your specific loan, you may get to take advantage of a lower down payment (instead of the 20% that has become customary these days), deferred payments, limited lender fees, subsidized interest (typically, though, only low-income borrowers get to take advantage of this benefit).
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4. You may qualify for one even if you've owned a home before
Wait... what?! Even though the name suggests otherwise, first time homebuyer loans are available for people who have owned homes before. To get one, though, you have to meet certain criteria – the biggest being that you haven't owned a home in at least three years.
Media Contact: James Paffrath , RealtyPin.com, 1-(866) 960-8649, firstname.lastname@example.org
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