First Time Home Buyer

[jacigia]

I am looking to buy my very first house with my fiancé. We are planning to get the house within a few months and I have questions regarding the loan. We don't have much cash to put down on the home and our credit is just average. I've heard of programs that will assist in the down and closing cost but I've been told by many that these programs are not good for prospective buyers because they are telling lenders that you have no money to put down. And because of this many lenders will not want to lend you the money for the house. Also because the seller has to participate in these types of programs, they will have to pay a fee therefore you’re probably not going to get the house you wanted and will have to settle for something less then what you expected. I'm new to the whole home buying process and not sure if this is the way to go for me. Based on the programs and what they offer, I believe I would be a qualified candidate for assistance programs but because of what I'm being told, I'm not sure if I should do it. If anyone out there has any thoughts or feedback, I would greatly appreciate it. Thanks. :confused:

[OregonLO]

You would want to check with the county you are buying in or with the state for any programs they might have to help with that sort of thing. There are programs out there that help. Most lenders will allow for state programs. There are some other companies out there like Ameridream that you can use. I would ask your loan officer if they have had any experience working with down payment assistance programs. You want someone who knows what they are doing, I would also check with your agent about it and see if they have any experience with it...

just my opinion. Good luck!

[jamesww]

You sound as though a FHA product would be your best bet these allow for seller contributions for your downpayment and closing costs if they are through a housing downpayment assistance program such as Neamiah or Ameridream. Also as the LO said there may be assistance programs in your county for first time home buyers. If you go with a FHA loan your use of downpayment assistance programs will not hinder you in getting a mortgage.

To check for county downpayment assistance programs in your area go to your county clerks office and ask about these programs as well as your city hall. You can also do a search online for "my county downpayment assistance programs" in the quote insert your county where it says my county. Search in all four of the largest search engines with these terms. Good luck and feel free to ask any other questions you have.

[jacigia]

Thanks for the information! Is there any reason why a seller or lender might not want to deal with someone on an FHA loan?

[nancyarora2020]

Buying a home can be complicated and frightening. You acquire a large debt and assume many new responsibilities. And in the back of your mind is that nagging question, “Did I get ripped off?”
I designed a list of few tips to help one make the best homebuying decision possible.


Look at the purchase as an investment.
Avoid short term loss. Most places have slow, steady home appreciation. You can make the most of your investment by buying in a neighborhood where home values are expected to appreciate.
Use a buyer’s agent. A buyer’s agent represents the buyer and is paid by the buyer to represent their interests. If you’re not a skilled negotiator, a buyer’s agent is probably the smart choice.
Choose agent wisely. Look for an agent experienced in working with buyers, with knowledge of the neighborhood you are considering and without a reputation for being “pushy.
Carefully inspect the home. Learn as much as possible about evaluating the condition of a home.
Watch interest rates. The lower the interest rates, the bigger mortgage a buyer can afford. An asking price may sound too high, but at a lower interest rate, you might be able to qualify for a loan and afford the payments.