Do you sometimes wonder whether you satisfy the first-time homebuyer requirements or not? If yes, this is a good time to focus on as the real estate market is thriving with many affordable options. So, let’s get started! The key factor to adhere to is not to get confused at any point and make the most of the tools and solutions around you to save thousands of dollars. Nothing can stop you from having your American dream home in 2021 and further.
So who is the most eligible candidate for buying a home for the first time? How To Qualify For First Time Home Buyer? What are the effective tools that help you throughout the process? What makes you more qualified?
Individuals who plan to buy a suitable property for the first time are the ones who haven’t owned any primary residence for three or more years. For instance, Kevin bought a house in 2011, sold it in 2017, and is now staying in rented accommodation. In this scenario, he qualifies as a first-time homebuyer.
Talking about the perks, then there are many. The most influential one is that you save money only when you know the difference between owning a home and just dreaming of it. And, guess what is more surprising? An eligible buyer gets access to a wide range of mortgage options, grants, and other assistance contributing to lower interest rates, EMIs and making it more affordable every coming month. Sounds great, right? The most popular first-time homebuyer mortgages are the FHA loans, VA loans, USDA loans, Fannie Mae and Freddie Mac.
What is the average income limit for an eligible first-time buyer?
Well, it all just depends on the program. There are different income limits for different programs. For example, Fannie Mae or USDA loan programs have specified income limits. At the same time, others have a debt-to-income ratio associated with them. After all, every program is unique. It is important to have a better understanding beforehand instead of experiencing any disappointments later on. So far, having a personal loan officer along can simplify the whole process while leaving you with beneficial recommendations.
Below we have a quick rundown of the most common first-time homebuyer requirements. Take a look.
With all the different programs, there’s something suitable and unique as per every buyer’s purpose. Possibly, it can be only that you may qualify for a single option, or else, it is just that you qualify for all. However, you need to decide on a program that offers the best terms.
- For an FHA loan, you need to pay a down payment of 3.5% and at least 580 FICO score.
- For a Conventional loan program, a down payment of 3% is required with a minimum 620 FICO score.
- USDA loan options require no down payment. They only require you to have a better FICO score of 640 or more than that.
- Last but not least, the VA loan program is only dedicated to military officials, retired members, or the spouse of a former militant. This program is backed by the Department of Veteran Affairs and is not considered for every first-time buyer out there.
Before applying, check out the best mortgage options for first-time buyers and it requires absolute attention throughout. So be thorough in your actions and do enough research diligently to avoid any setbacks later. Whenever you feel confused, feel free to look for a professional loan officer who can prepare for it all.