If you are shopping for your first home, you are also looking for your first home loan. There is not just one type of mortgage that is suitable for first time homebuyers. There is a wide range of possibilities that can be ideal for different scenarios. To give you an idea of what is out there, let’s go over some of the types of mortgages that are most suited to first time homebuyers.
Types of Mortgages For First Time Homebuyers
- FHA Loans. When you are in the market for your first home ever, there is a likelihood that you are in the process of building your financial life. Your credit score and debt-to-income (DTI) ratio may not be as competitive as they would be if your finances were more established. At the same time, you may not have the savings necessary for a 20% down payment. An FHA mortgage is ideal for this situation. The qualification requirements are relaxed since the Federal Housing Administration (FHA) guarantees the loan. Down payment requirements are also low, and interest rates are affordable.
- USDA Loans. When shopping for a home in a rural area, USDA mortgages are some of the most affordable options for first time homebuyers. Qualifying for this type of loan guaranteed by the US Department of Agriculture does require that you fit the allowable income bracket. You do not need to make a down payment, however, and interest rates once more are competitive.
- VA Loans. First time homebuyers who have served in the military may meet the requirements for loans guaranteed by the Department of Veterans Affairs (VA). These zero down mortgages do not require PMI, and have affordable interest. They can make it easy to move into your first home in Florida.
- Conventional Loans. Although mortgages insured by government departments are often the top recommendations for first time homebuyers, one should not overlook conventional mortgages. Many people purchasing their first homes are unaware that conventional loan down payments can be low for those with high credit scores.
- Jumbo Loans. Jumbo loans may not be suitable for all first time homebuyers, but they do have their applications. Sometimes the first home you buy may be one that is in a higher price range than you can afford with a conforming loan. With competitive qualifications, you may be able to take out a jumbo mortgage.
- Bank Statement Loans. First time homebuyers nowadays are more likely than those of past decades to be self-employed. You can avoid hassles with W-2 forms you do not have by using a bank statement loan to purchase your first home. The process is fast and easy, which also gives you the advantage of closing rapidly.
Let Premier Lending Corp Find Your Ideal Mortgage
Not every mortgage company offers all these different types of home loans. So, if you are shopping for your first home in Cooper City, Hollywood, Fort Lauderdale, or anywhere in FL, you should work with a company that provides you with all of these options. Premier Lending Corp can connect you with any of the types of home loans we discussed and can walk you through the steps to apply. To schedule your consultation now, please call us at 954-840-8811.