First Time Home Buyer Programs
There are still many great First Time Home Buyer Programs available today, many with zero down payment.
Most programs require that the borrower has decent credit, and must have a stable job with documentable income.
Here is a breakdown of things you need to be prepared for to qualify:
Income and Job History:
You must have stable income that can be documented. This means 2 years in the same line of work with no significant unexplainable gaps. If you are a W2 employee of a company, you will need to supply 2 years of W2s as well as 30 days’ worth of paystubs. If you receive commission income or bonuses, the underwriter will take a 2-year average of those amounts for qualifying.
Self-employed individuals will have to supply 2 years of tax returns, and the underwriter will use a 2-year average of bottom-line income (after expenses) to qualify you.
We can help you determine if you have enough income to qualify and how much home you can afford.
Even if you are applying for a First Time Home Buyer Program that requires no down payment, you will need to have money for closing costs; unless, you are working with a seller who has agreed to pay your closing costs. You may also be required to have a month or two worth of mortgage payments for a reserve account.
Generally speaking, your credit score must be above 620 for most programs, and you must have a clean credit history for the past 12 months. If your score is below 620, we may still be able to help you as we do have loan programs that allow a lower credit score. We can also help you by providing you tips on how to improve your score. First Time Home Buyer Programs require that you are at least 2 years out of bankruptcy if you have filed, and 3 years past a foreclosure in order to qualify.
Common First Time Home Buyer Programs:
Some of the more common First Time Home Buyer Programs are: FHA (3.5% down payment), VA (0% down payment), and USDA (0% down payment).
There are also down payment assistance grants that can help if you do not have enough for a down payment. The most common ones are Cumberland County Affordable Housing Trust Fund and the Dauphin County First-Time Home Buyers Second or Subordinated Mortgage Program.
Team Rebecca is known for our same-day pre-approvals and is a top First Time Home Buyer Mortgage Lender. Find out fast what you qualify for by talking to one of our home loan professionals.
Central Pennsylvania’s First Time Home Buyer Mortgage
To learn more about first time home buyers’ mortgages in Central Pennsylvania call us by phone at 717-609-4044 or via email at TeamRebecca@FooteCapital.com.