Buying your first home is one of the most exciting things you can do. Not only do you get to escape the rental market, but you also get to finally build equity with all those monthly payments. For most Gig Harbor first time home buyers just coming out of the rental market, getting qualified for the right loan and being able to get into the perfect house is overwhelming. There are many first time homebuyers programs in place to help make it easy.
FHA Loans
If you don’t have a lot of money saved up for a down payment on a house, an FHA loan is one of the best options you’ll have access to. These loans are ideal for Gig Harbor first time homebuyers that have lower credit scores or lower income levels. The FHA program requires that you have a credit score of 580 or higher and at least 3.5 percent of the home’s sale price saved up as a down payment. In return, you’ll get a low-interest loan to help you purchase a larger house than you’d qualify for with a conventional mortgage.
USDA Loans
Many homes in the Gig Harbor area satisfy the requirements for USDA home loans. Like FHA loans, these loans are guaranteed by the federal government and have more flexible credit score requirements for borrowers. You’re able to buy a house without a down payment provided that house is in a qualified rural area. Your real estate agent should be able to help you find out which properties in your area qualify.
Home Advantage Program
The Home Advantage program is unique to Washington State. It allows you to take out a 30-year mortgage at a fixed interest rate even as a low-income borrower. You can even combine this type of financing with the state’s first time home buyers’ programs to make coming up with the down payment less difficult. That said, you will need the full 20 percent down payment to qualify for the loan.
Buying a House Is Possible
For Gig Harbor first time home buyers, it’s always best to take advantage of as many first time buyer programs as possible. If you’re not sure where to start or need an experienced mortgage professional to help you find the best option for your financial situation, don’t wait. Contact us today to speak with our team and let us help you get into the home of your dreams.
