First Time Homebuyers | San Francisco and the Bay Area
First Time Homebuyers
Becoming a first time home buyer can feel a little intimidating. It’s an experience some only dream about. There are many tangible benefits to first time home buying and it can be the biggest single tax break to most consumers.
If you’re not sure where to begin, we’re here to help you with your mortgage purchase.
Clean it up or pay it off.
One of the most common misconceptions that would-be-homebuyers follow is to save as much money for a down payment as possible while allowing their debts to grow. Lenders want to see consumers who can pay bills on time, and who don’t owe too much to anyone else. Consider this, the average interest rate on a consumer credit card is typically twice to three times greater than the national average for a 30-year fixed mortgage.
What’s Your Limit?
You’ll need to consider two things: How much can you borrow and how much of a down payment can you make? Housing tends to take up approximately 25-30% of your gross income. This also includes the property taxes and the homeowner’s insurance. A first-time home-buyer with a steady job and good credit can usually buy a home with less than 20% down, but the more of a down payment the more options you’ll have, like interest rates.
Is Your Credit Score Lower?
If your credit score is lower, you might qualify for a loan secured by the Federal Housing Administration, also known as an FHA Loan, which is one of our loan specialties. If you are having trouble with the down payment, the U.S Department for Housing and Urban Development (HUD) gives states and municipalities money to distribute to low and moderate income families for housing. Most of it is primarily given to down payment assistance programs.
There are specific criteria for this assistance, and you may qualify. Ask us how.
