How To Buy Your First Home With No Money Down
by: Pete Wagner
The current home buying frenzy has resulted in rapid escalation of home values during the last several years.
Certain areas of the country have seen values climb by 100% or more during the last four years.
Many first time home buyers have sat on the sidelines watching as the cost of owning a home has spiraled out of reach.
Traditionally, future home buyers were taught to save their money to get into their first home.
This thinking left many with a dilemma.
How does one save money when they are stretched too thin on a monthly budget with high rental prices and little to no tax deductions?
It is and has always been nearly impossible.
Federal Housing Administration (FHA) was the only option for low down payments up to the late 1990s until some of the larger mortgage investors came up with their own low down payment options and took on the larger risk of home depreciation by requiring little to no money down.
How do you get a low to no money down loan?
First, talk with a qualified company that has experience with 100% financing and first time home buyers.
Check local mortgage Web sites to see some innovative programs.
Second, find out how much you can afford based on your monthly income and budget.
It is a good idea to add in all of your expenses so you are leaving room for entertainment.
Yes, many people sacrifice a bit of their ?Pleasure? expenditures when buying their first home.
You will not be alone in this respect.
Don?t forget the tax deduction you will receive as a home owner, in most cases.
The tax savings should improve your monthly cash flow.
Third, get a good credit check up.
You can visit http://www.freecreditreport.com and obtain a credit report on yourself.
You should obtain the credit score version because they will be important on most 100% financing programs.
Your scores should be somewhere above 640 or more to qualify for most programs, though some programs allow lower scores than that.
Forth, obtain a pre approval letter from your lender or broker so you can present this to your Realtor when shopping for your home.
Make sure the terms and costs are accurate so you don?t have any surprises at the closing table.
Fifth, don?t bite off a larger payment than you can afford.
Many times, lenders allow you to spend 50% to 55% of your monthly gross income on your credit items.
This doesn?t always leave much for essentials like groceries and utilities.
Lastly, remember the first year of home ownership is usually the toughest.
After a year or two, you can generally refinance your home loan into one loan that may be a better interest rate, depending on where interest rates are at the time of refinancing.
The plan is to eventually have equity and start your nest egg growing.
About The Author
Pete Wagner writes for California Mortgages Online ( http://www.californiamortgagesonline.com ). Learn more about California second mortgages at http://www.californiamortgagesonline.com/credit-solutions.html.
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Avoiding Bad Credit and Repair
Avoiding Bad Credit and Repair
by: Jonathan Cheong
Staying in contact with your payments each month can help you avoid bad credit. If you research the marketplace before coming to a purchasing decision, you are well on your way to avoiding bad credit and repair credit hassles.
You want to consider all applications, including credit cards, student loans, mortgages, and car loans carefully to avoid being overcharged. Making the wise decision ahead of the game is the ultimate solution to maintaining good credit.
Most people when taking out a home mortgage loan are not aware of the options available to them. Many will walk in the bank door, fill out the application, and accept the terms & conditions when offered to them.
If you ever heard the many reports that swept the pages of newspapers, television and other advertising sources?families and individuals are filing bankruptcy because they cannot afford their homes anymore.
This...
Avoiding Bad Credit and Repair
Mortgages > Avoiding Bad Credit and Repair
Mortgages: What You Need To Know
Mortgages: What You Need To Know
by: Marvin Jones
A mortgage is legal agreement or contract that says that a party has agreed to put up a property, a house or a piece of real estate, as security to get a loan. By doing this, the person getting a loan can buy a piece of property that he initially cannot afford. Still, if by any chance, he cannot pay for the loan, the bank will have to foreclose the property and resell it to others.
The lender will hold the title of the property until after the full amount of the loan is paid for plus interest. Depending on the terms of the loan, repayment can last until a couple of years. Two of the most common mortgages in the country are the fixed-rate mortgage and the adjustable-rate mortgage.
As shown by the name, fixed-rate mortgage has an interest rate that stays the same all throughout the life of the loan. If for example the loan is termed for 10 years, then the interest rate will stay...
Mortgages: What You Need To Know
Mortgages > Mortgages: What You Need To Know
Consider Different Reverse Mortgage Options
Consider Different Reverse Mortgage Options
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There are many different reverse mortgage options: single purpose reverse mortgages, federally insured reverse mortgages, and proprietary (private sector) reverse mortgages.
Each option has different pros and cons that need to be considered when looking into taken out a reverse mortgage.
Single-Purpose Reverse Mortgages
A single purpose reverse mortgage is the lowest-cost type of reverse mortgages to obtain, but as the name indicates it can only be used for one specified purpose.
They are typically offered by state or local government agencies.
These loans a great for individuals who need cash for a specific purpose like paying property taxes or fixing up there homes.
Here are descriptions for several different types of single purpose reverse mortgages:
Property tax deferral (PTD) mortgages are reverse mortgages that...
Consider Different Reverse Mortgage Options
Mortgages > Consider Different Reverse Mortgage Options
Types of Mortgage Loans ? The Basics
Types of Mortgage Loans ? The Basics
by: Dan Lewis
In the past, homebuyers more or less had limited mortgage loan options. These days, there are more options than you can shake a stick at, but here?s a primer on the basics.
Mortgage Loans
With the real estate market explosion over the last 10 years, a call has gone out for unique mortgage loan programs. Bankers have been more than happy to answer the call. For many borrowers, traditional mortgage loans still fit the bill. Here?s an introduction.
1. Conforming Loans ? The loans comply with requirements set down by Fannie Mae and Freddie Mac, two government sponsored entities that buy and sell loans from mortgage lenders. These entities put strict caps on the loans they will buy, with single-family homes having a mortgage cap in the range of $360,000. With the booming real estate market, many areas such as San Diego do not come close to fitting into the conforming loan market since...
Types of Mortgage Loans ? The Basics
Mortgages > Types of Mortgage Loans ? The Basics