Easiest way to get a loan for a first time home buyer?
Topic: Easiest way to get a loan for a first time home buyer?
June 16, 2019 / By Cady Question:
My boyfriend and I don't make that much money, but we both do work full time at a restaurant. We want to buy a house. I have bad credit just because of a medical bill i haven't been able to pay yet. Other than that, I don't have any credit. My boyfriend has some credit. His parents have awesome credit and want to cosign for us. Is there any first time home buyers offers with no money down out there? The houses we want are less than $60,000.
My job is stable. I have only been promoted there. I have worked there since I have been 14. I am now almost 21. My boyfriend has worked there even longer. And yes, the owner loves both of us, and so does the next person in line to own the business. He likes us even more. I most definately have job security. The restaurant has been flourishing for almost 40 years and the franchise it is has existed for 50 years. Also, townhouses and condos are more expensive in my area than these little houses i have been looking at.
Best Answers: Easiest way to get a loan for a first time home buyer?
Allyson | 4 days ago
BEST way is to WAIT.
In this loan market, very difficult for you to get a mortgage, even with cosigners.
Make a plan for your future.
BUILD some credit, get a credit card, use it, and pay it off in full, on time, every month. Pay off the medical bills and any other delinquent stuff. Pay down all credit cards, don't carry a balance. Pay all bills in full and on time.
Lenders want you to have two years on the job, or at least two years in the industry, to show job stability to get a loan. So you both have that.
Lenders also look at your income, whether it is sufficient to carry the loan, and your debt load and your credit rating.
SAVE for down payment. The more you put down, the better a credit risk you are, the more likely you will get a mortgage, and the lower the rate. The MORE you put down, the LESS you pay in interest (TENS of THOUSANDS of Dollars) over the life of the loan.
Unless you're military, there are NO 0% down loans, and they are a BAD idea, as you have no equity, no ownership in the home. Lenders won't do them now, because if you can't even save up 3.5 to 5% (of $50,000!!), you're a POOR credit risk.
RULE of THUMB: you can afford a home/condo/townhome up to 2.5 times annual income, NOT more than 3 times annual income.
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Originally Answered: If i buy an investment property in cash. can i still qualify for a first time home buyer program for a home.?
The only way to find out is to apply.
Always disclose accurate information on all loan applications. Not disclosing the investment property is bank fraud.
Most underwriters may only ask for a letter of explanation about the investment property and copies of your tax returns to see if you are actually treating that property as an investment.
Based on what you have disclosed, a 3% down loan programs would be available to you.
When in doubt, error on the side of honesty.
Reality check. The reason the country is in the state we are in right now is because people wanted homes yet couldnt afford them. You may not like this but you need to have a more stable job than a restraunt job to be able to enter into a long term contract like a mortgage. The most common mortgage term is 30 years. Will that restraunt be here 30 years from now? Will it still have the same owner? Will the owner still like you? If you want to own something try looking into a condo or townhome. You own them yet dont have the maintainance problems. Sorry but houses are expensive all around. Just saving you the trouble.
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There is no "easy way" any more. Your cordial relations with your bosses will not sway a lender. "Wanting to buy" and "able to buy" are not the same things. To buy a house, you need:
1. Adequate income.
2. Cash for the down payment and closing costs.
3. A good credit record (that includes paying off your medical bills first).
4. No excessive debt.
Pick up a copy of "Home Buying For Dummies." You need to learn the basics and the process BEFORE you go house shopping.
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You don't say what your income is?
You may be able to get an FHA loan, but you will need some sort of down payment. At least 3.5%. You can have your boyfriend's parents gift you the down payment possibly.
The thing is, you and the boyfriend should get married first before trying to buy property together. You also should get your finances and credit in order so you don't have to risk the boyfriend's parents excellent credit score.
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I doubt you can get a loan in todays climate and to tell you the truth You would be better off renting right now and saving money, I think Housing is still going to drop another 20 to 30% and you really need to put 20% down to avoid paying PMI (Personal Mortgage Insurance)
It will be much cheaper for you in the long run
This is just my opinion of being 54 and observing market trends and my thoughts of the future economy
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Originally Answered: first time home buyer brokerage or bank?
A mortgage broker would be just as effective or more effective obtaining a mortgage loan for you. They charge about as much as your bank would charge,otherwise they wouldn't be in business.
A bank has it's own mortgage product for sale. If you fail to qualify and get approved for their product, you are out of the ball game.
A mortgage broker has been approved to do mortgage banking business with several direct lenders and could be approved to do business with your bank. If they fail to obtain a mortgage loan for you through one of their investors, they would, without any additional charge, resubmit you mortgage loan package to another of their direct lenders.
As far as a no fee mortgage loan, this is might not sound as good as it appear. You would have to decide for yourself if this is something yo would want to do. Even though you would not be charged points and fees for the funding of your mortgage loan, the lender would increase you interest to cover the cost of doing your mortgage loan.You would have to pay this higher interest rate for the life of the mortgage loan, or until you refinanced the mortgage loan.
There are tax consequences for not paying for closing cost and points for your mortgage loan. If the lender increase your then you would not be able to deduct these points and fees from your income tax, which on a purchase would be all at once.
With the lender paying closing cost through an increase in the interest rate you would only be able to deduct the interest rate of the mortgage loan.
There are many things you should do, the first thing you should do is contact a mortgage broker that does VA, USDA, and FHA mortgage loans and get pre-approved. This is the first step. Once you have your pre-approval then contact a real estate agent to look at house based on what you are qualified to buy.
You will need proof of income so have available pay stubs, w-2, bank statements and other items your mortgage broker will require.
He will inform you of what is necessary once you contact him.
This pre-approval will tell you the amount of house you are qualified to purchase as well as the interest rate, monthly mortgage payments and other necessary things you need to know about your mortgage.
If you fail to purchase a house prior to the pre-approval letter expire you may reapply and be reissued another.
I hope this has been of some benefit to you, good luck.