First Time Home Buyer

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Owning a home may be your dream, but in order for the purchase to be the happy and satisfying experience it was meant to be, you need to ensure that you are financially and mentally prepared for the responsibilities that come with it.

Some people have a notion that home ownership is like renting, but with the power to have pets and paint the walls whatever color you like.

However, while these privileges are available to homeowners in most municipalities, they come with the responsibilities of a mortgage, taxes and home maintenance. Preparing for home ownership requires you to take critical stock of your finances and your expectations.

Buying your first Home is a major life event. Let our first time home buyer experts help you!

Go From Prepared To Purchase

For many first-time buyers, saving for a down payment is the most difficult step in the home-buying process. However, it’s a common misconception that you always need 20 percent down to buy a home.

Here’s the lowdown on the most popular low-down alternative payment options:

Traditionally the mortgage of choice for first-time buyers, the Federal Housing Administration (FHA) offers government-insured loans with as little as 3.5 percent down. The most popular FHA loan option, the 203(b), is widely available from lenders across the country. You may qualify with a credit score of just 500, although there may be limitations on some condo purchases.

This program allows you to put between 3 and 5 percent down, as long as you intend to use the home as your primary residence, and don’t currently own or share ownership of another house. You’ll also need to complete a required homeownership education program online.

Just 3 percent down is enough to help you qualify for a Conventional 97, as long as you’re applying for a fixed-rate mortgage on a single-family home that’s less than $417,000. You’ll also need to participate in a homeownership education program, and at least one of the purchasers applying for the loan must be a first-time buyer.

Another option that requires as little as 3 percent down, HomeReady can also offer below-market interest rates. Additionally, this program allows non-occupant borrowers to apply. For example, parents can secure this type of loan for a young adult who’s just starting to establish credit.

The Ultimate Buyers Guide

Download our FREE buyer’s guide to learn more about the home buying process. Featuring basic buying tips plus a glossary of common real estate terms!

ELEVATE YOUR PROPERTY SEARCH

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Continue your search for the perfect home from the convenience of your smartphone or tablet. Our RE/MAX® app caters to your unique needs by bringing the same experience found on our website to your smartphone or tablet. Save searches, favorite listings and schedule showings — all while on the go!

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