Down Payment Mortgage Assistant Program For First Time Home Buyers
You have a lot to consider for first time home owner down payment – the type of home you want to buy, the sort of neighborhood in which you want to live, the various amenities you want your home to have, and of course how much it’s going to cost you to buy the home. You need to know about various government programs that might be available to help you with home buying, and of course you need to know what you should know about down payment for first time home owners.
What Is A Down Payment?
A down payment is the money you’ve saved up, that you’re going to combine with a mortgage in order to buy a home. Your down payment and the amount of your mortgage add up to the full price deal. The size of your down payment is considered along with the total amount of debt you’re already carrying, your annual income, your credit score and your credit history to determine how much house area you’re going to be able to buy. Hence, first time home owner down payment assistance program in Orange County is available for guidance and help. That is why Arbor Financial Group is here to help tyou every step of the way and answer any questions you may have.
How Much Of A Down Payment Will I Need?
In order to qualify for a conventional mortgage, you’ll usually need anywhere from 5-20% of the buying price of the home. If the down payment is under 20%, you will need to pay mortgage insurance.
For many people, saving a 20% down payment can be difficult. First time home owner down payment with respect to unknown/new persons or people with low household incomes may qualify for alternative programs that require up to a 3.5% down payment. Most of the programs that require lower down payments are available through the Federal Housing Administration (FHA).
Down Payment for first time home owners is the biggest obstacle to owning a home, so it makes sense to find out exactly what’s available. In California, first-time buyers may qualify for assistance under CHDAP (California Homebuyer’s Down Payment Assistance Program). The loan is for up to 3% of the purchase price, and it can be used to offset the closing costs as well as the down payment. It can be combined with a first mortgage loan. To qualify, you must be a first-time buyer, occupying the home as your primary residence, and must complete a homebuyer education program.
The home that you are purchasing must be one-unit, single family dwelling, must meet the lender’s requirements, and the price of the home can’t exceed the CHDAP limits that are established for the Orange County where the property is located. Condominiums must meet mortgage guidelines where manufactured housing does not qualify. The property cannot be more than five acres, and co-ops, leaseholds and land trusts are not permitted. There are also income restrictions, which are explained on the CHDAP website.
Home Ownership Is Achievable
With many first time home buyer down payment assistance programs that are available to help first time home owners with their down payment, home ownership is achievable even for people who have little ready cash. Lack of a large down payment does not have to be an obstacle to home ownership.