subject: How to Get a First Time Home Loan Easily [print this page] How to Get a First Time Home Loan Easily How to Get a First Time Home Loan Easily
Buying a house maybe the most important thing you ever do in your life, it is certainly the most expensive as a rule. The question many people have is how to get a first time home loan, these are supposed to be loans that can help you more easily purchase your first residence. There are a few things you should know if you are thinking of using this type of home financing.
Qualifying
Not everyone will qualify for a first time home loan. Of course, if you have never purchased a home before your chances are much greater. However, you need to look at more than your personal qualifications for this type of loan. Many times if it has been three years or more since, you purchased a home you will qualify as well, but will the property.
Properties in the upper range where you live will probably not qualify for this type of loan. As a rule, the program limits the dollar amount of a first time home loan, which puts it more in the medium to lower price range. This may not be the type of house you want to live in they may be too small for your family or in a neighborhood, you would prefer to avoid.
Credit will still be an issue, even though these loans are billed as helping loans for people who otherwise could not purchase a house you still need a score upwards of 600, for FHA you need a FICO score of at least 620. This can be frustrating since you could possibly qualify for a traditional loan with this type of credit score.
Where to Apply
There was a time when you had to go to a special location to apply for many subsidized home loans. However, today most financial institutions can assist you with applying for a first time home buyer loan. Even FHA and HUD loans are handled by banks in your area. You can also look to other lending institutions as well.
Downside
Everyone wants to own their own small piece of the American Dream, which includes the house and white picket fence. Nevertheless, a first time home loan might not be the best choice for you in certain circumstances. For example if you are not sure you will be in the home long you will want to check the terms of your loan. Many first time financing loans require that you live in the house as a primary residence for a specific amount of time, in some cases three years.
Conclusion
Whether a first time home loan is right for you or not will take a bit of research. You need to consider carefully your housing needs, length of ownership and other potential problems before you sign on the dotted line. If you are having trouble, finding suitable financing you should check with your local, state or federal housing offices for more information. New financing options are coming around all the time so be sure to exhaust all possible avenues.
