First Time Home Buyer

Many potential first time home buyers are wondering what to expect when they approach a lender given the latest developments in the whole mortgage mess we are in.  Will the required down payment be more than 5 – 10%?  Are there any 0% down payment programs out there for first time homebuyers anymore?  How does the first time homebuyer sort through all the changes that are taking place anyway?

Many first time home buyers have these questions as well as other pertinent questions on their minds.  This is in part because of the current credit crunch that the United States is experiencing.  The answers?  Yes, there are 0% down payment programs available for the first time homebuyer still; however, many have stricter qualifying regulations.  Being aware of the changes in the rules can help avoid stress and confusion during the buying process. 

One of the first and most important things to consider is that credit scores are more important today then they ever have been.  Chances are if you have any blemishes on your credit score at all a lender will not want to extend a 0% down payment loan to you.  Therefore, before even beginning the process of pre-approval or shopping for homes and or lenders you will want to pull your own credit report.  You can actually do this once a year for free from each of the three main credit agencies.  Look at the report to see if there are any items listed that need your attention.  Dispute anything that is not correct, if something has been paid in full but is not reported as such you can have that changed before a lender looks at the report.

You are likely to find that lenders are getting rather restrictive on a whole and particularly with the ratios that they use when qualifying for a loan.  For instance, if you need private mortgage insurance, which is generally required for people who put less than 20% down, then the private mortgage insurance company might require a larger down payment.  They may simply allow a smaller ratio as well; this will end up lowering the total amount that you are able to borrow.  It is competitive today and despite the fact that people want and need to move the huge number of available homes off the market lenders want to make sure they will not be foreclosing on a home because of defaulted loans too.  Fully understanding all the rules and doing the foot work first is very important in this tougher mortgage environment; however, doing so will put you ahead of the game and help to secure your mortgage and your first home.

An online real estate marketing company, Yourkasa.com is thrilled to announce that is now offers mortgages and loans from 100 different venders on its website. Other websites may offer similar to consumers; however, the difference is in the home buyer packages that make buying a home much easier. The first time home buyer will value the innovation this service offers in allowing them to research and choose the right mortgage lender to meet their specific needs. The consumer does not have to anxiously wait for an answer now because each company on the real estate marketing company’s huge list of lenders does all the work and makes all the contacts for the potential home buyer should a match is made. Neil Terc, president of YourKasa states, “YourKasa is interested in opening up opportunities to everyone who is thinking about buying a home for the first, second or even third time. We’ve created unique home buyer packages that assist individuals in the detailed process of purchasing a house or other type of real estate.”

The homebuyer packages, mortgage and loan services available through YourKasa, provide interest rates that are somewhat higher than the national average. Additionally, with FHA financing, down payments as low as three percent and closing cost assistance are available if necessary. YourKasa employs specialists who are trained as well as having experts in the real estate industry available to guide consumers through the process and can find out if the consumer qualifies for the program in just minutes.

Consumer’s, including the first time homebuyer’s low credit score does not always exclude them from obtaining loans. An FHA mortgage can still assist the homebuyer purchase property and become valid home owners; a dream of many becomes a reality. In addition to rates as low as a 30 year fixed 6.5 percent mortgage loan, 97 percent financing is available. Additionally there are mortgage options that include 203k loans for rehabbing a property and offers of upfront monetary assistance. With the many programs and opportunities available through YourKasa, many first time homebuyers are given the chance they need to find the right financing and programs online in the time they have during their busy lives.

YourKasa.com offers a feature rich online site with real estate property listing that connects home sellers with home buyers. The site is full of resources and is navigated easily providing sellers the ability to market their homes to a vast targeted audience as well as enabling potential buyers to view thousands of real estate listings. Detailed profiles, pictures and maps are available online for the potential buyer to shop for their new home from the comfort of their current residence. With the addition of the new programs on YourKasa the potential first time homebuyer is able to be guided through the traditionally complicated and stressful process of buying a home.

The program launched by California’s Governor reduces the interest rate on 30 year fixed mortgages to a below market rate. This is aimed to help the first time home buyer purchase targeted foreclosed homes in certain areas of California that has been hit hard by the foreclosure crisis. These homes are reduced to bargain prices to make them more attractive to the first time home buyer. First time home buyers purchasing a home to live in as their primary residence are eligible for the program. Additionally they must be a U.S. citizen or legal resident and meet the credit, income and loan requirements of the program.

The program is run by the California Housing Finance Agency. The program has estimated $200 million to aid from 800 to 1,000 families looking to buy homes. Income limits apply as couples are allowed to earn up to $67,800 in some counties and up to $73, 560 in others; the limits to qualify increase for families with three or more persons.

Certain credit requirements apply as well as borrowers must have a credit score of at least 660 for a loan up to 95 percent of the value of the home. For homes that exceed 95 percent of the homes value the credit score must be over 680 to qualify.

Not every foreclosed home in the specific areas of California is eligible for this program. Foreclosed homes that are selected by Fannie Mae, CitiMortgage, HomEq Servicing and Wells Fargo Premier Asset Services are the only homes eligible for this program. Additionally the homes must meet all CalHFA and Fannie Mae inspections, health and safety codes and repairs requirements to qualify. There are currently almost 100 homes that are on the list of eligibility now in the counties of Stanislaus, San Joaquin and Merced and more are being added every week. All of the homes listed are priced at least 12 percent below their estimated value helping the first time buyer reach the dream of homeownership.

Potential buyers must be aware that they are required to complete a home buyer education counseling program. These programs are available over the Internet, in person or over the phone; however, a certificate of completion must be issued through Fannie Mae or Freddie Mac identified counseling administration agencies, mortgage insures or HUD approved buyer counselors to be valid. The lenders themselves also are subject to certain requirements including being CalHFA approved lenders.

Despite the qualifications and requirements both the potential first time home buyer as well as the neighborhoods of the eligible homes are thrilled with the program. Buyers in need are being united with homes in need and offering revitalization for many neighborhoods in the counties that have been hit hard by the foreclosure crisis in California.