First Time Home Buyer Loans

To get a mortgage loan as a first time home would be a good thing right now

. One reason is the first time home buyer tax credit is available to whether or not you take out a mortgage loan.

A first time home buyer is someone that hasn't owned a home in the previous three years, regardless if they have had a mortgage loan on one, as homeowners needn't necessarily be on a mortgage loan to have an ownership interest in a property.

The first time home buyer tax credit requires that buyers remain in the home for a minimum of three years, or they will pay back part or all of the credit.

First time home buyers looking for a mortgage loan should shop several mortgage lenders before making a decision. With so many questions that first time home buyers have about getting a loan, the advice of an independent third party, such a real estate attorney would be a good thing.

Foreclosures, short sales., and REO properties, which means bank owned properties are good choices for first time home buyers when choosing a property. They are reasonably priced, and although may need some work, are great first time home buyer projects.

First time home buyers getting a loan on one of these types of properties is similar to getting a loan on a property in a traditional sale, but may take longer.

Fist time home buyers applying for a mortgage loan can expect to put down anywhere from 3.5% to 10% as a down payment. Firs time home buyers with very good credit looking for a loan with Fannie Mae are able to put down 5%, or 3.5% with FHA.

First time home buyers that are veterans, as in active, reserve, or retired are eligible for zero down loans.

Many first time home buyers expect when getting a loan that the tax credit will available to them at closing, or may be used as part of the down payment. The first time home buyer tax credit will be filed with taxes the following year. Contact your tax professional for more details.

There was a time when first time home buyers, when applying for a home were able to receive credits from either the seller or a third party, such a down payment assistance program. Both lenders and government agencies, specifically FHA found that first time home buyers that took out loans without having a vested interest in the property had higher rates of default than first time home buyers that did have a vested interest in their loans and properties.

by: Adam Morris

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