Can you get qualified? Even without a substantial down payment saved, you’ll find there are programs—such as the FHA loan program—that make it possible for you to become a first-time home buyer.
Make Your First Home Purchase Your Best-Ever Decision
Take advantage of interest rates. There’s no guarantee that interest rates are going to be this low forever. By getting out of the renter’s game and locking in low interest rates, you can begin a lifelong journey of wealth building.
Use less money down than you imagined. The concept of saving up 20% for money down against a loan can scare some first-time home buyers. But we’ll explain why that doesn’t always have to apply to you.
What You Need to Know About First-Time Home Buying
According to some statistics, a majority of renters who want to buy a home don’t move forward because they’re afraid they don’t qualify! But there are plenty of programs that make it viable for lots of people—even those with poor credit—to qualify.
For many first-time home buyers, the main issue is coming up with the down payment. Many of those who would otherwise buy a home feel they would move their purchase timeline forward if they could make the down payment.
With some first-time home buyers’ terms, it’s possible to pay with a relatively small down payment, much smaller than the usually-expected 20%.
Home sales are as hot as ever, with available homes sometimes going off the market in as little as three weeks in some areas—or even less.
Find favorable terms. When you approach it the right way, your first home purchase can be a door to great terms that help you with your monthly budget.
2 Ways to Use Your FHA 203(k) Loan
Buy a Fixer-Upper (and Fix It Up)
Or... Renovate Your Current Home!
Arlicia is the best. She’s professional, knowledgeable and easy to work with. I’ve heard horror stories from others about purchasing a home but she made the home purchasing process a breeze. Any questions, I received a quick response, no hesitation. She is awesome and I’m very grateful to have chosen her as my loan officer.- Keash K.
I reach out to Arlicia months before for guidance to become a homeowner not only did she provide me with advise to boost my credit she got me into a house. I started my process with her and found a house in a week and close in 21 days. I’m still shock that she was able to make all this happen so fast. Mrs Arlicia again I’m very thankful for all that you did to make me a homeowner.- Gayle S.
I definitely will use her again, she was very detailed and helpful with everything I asked of her, yes she will be my next lender for my next house and my next house and my next. I was definitely satisfied with the outcome of everything- Alando C.
Arlicia is knowledgeable, attentive, kind and experienced. She will help you to understand every step of the home buying process and make time to answer any question/concern you may have. Every time I do a deal (first time homeowner and refinanced home) I feel confident in knowing I’m getting the best deal under Arlicia’s guidance. She is that good!- Brittany D.
In the beginning of our first home you were there with us to make sure we were able to find what was a fit for us and our family. Who would have known 2 years later, we would be on another journey in which that same home you helped us with would sell in such a short time. In this next chapter in our family’s lives you went above and beyond what we expected. I can say that the professionalism and integrity you walk in was a great experience and you are great at what you do. Not only have you been a great help in our lives once again, you have been a great blessing. True destiny helper. May God give you an overflow of great abundance in your life and your future generations.- Fay F.
This is the second time Arlicia Jones has helped my family secure a safe home when other lenders wouldn’t bother to go the extra mile I highly recommend for anyone seeking a loan for new home refinancing or etc. thanks again for the help- John L.
Your Renovation Wish List Could Include...
Increase window size
Bring in more natural light
Finish a basement or attic
Create a mother-in-law apartment or guest space
Correct foundational issues
Protect your investment for the long-term
Add a detached garage when one does not exist
There’s room for everyone
Knock down walls
Open up the floor plan to create versatile, welcoming spaces
Flood-proof your property
Add a retaining wall to prevent expensive damage
Repair the pool
Tired of leaks and cracks? Fix the pool & start enjoying it
Expand or refresh the kitchen
Cooking is just more fun in an updated kitchen
Add square footage
Growing your family? Grow your home alongside it!
How Does a Renovation Loan Work?
Depending on the types of repairs you plan to do, you have two options when it comes to securing a FHA 203(k) Renovation Loan: Limited and Standard.
The Limited 203(k) loan
The Limited 203(k) loan is for non-structural or “cosmetic” repairs. It covers up to $35,000 in renovation costs. With a Limited loan, you can do nearly anything that doesn’t affect the home’s structure! Think kitchen and bathroom remodels, carpet and flooring replacement, painting, appliance replacement, and much more.
The Standard 203(k) loan
The Standard 203(k) loan is a loan for projects with repair costs over $35,000. It can be used for structural or non-structural repairs. With a Standard Loan, you have even more flexibility. You can expand the home’s footprint, improve accessibility for differently abled people, and even move the home to a different site.
What Do First-Time Home Buyers Need to Know About Buying a Home?
Why should I buy a home now and not rent until I can save up a massive down payment?
Because there are plenty of options for lowering your down payment! For example, the FHA loan program, which includes loans insured by the Federal Housing Administration, is great for people with low credit scores and not a lot saved for a down payment. That isn’t to say that you shouldn’t save for a down payment—but remain open to all of the options available.
How will I afford my home?
Pre-approval for a first-time home buyer can be a major step in the process, and it’s easier than you think. A pre-approval is essentially a (conditional) promise from a lender that they can offer you the mortgage terms you need to make an offer on a house. This requires an application process that’s much simpler than you might imagine—and great for first-time home buyers who want to shop around and demonstrate to a seller that they’re serious about their offer.
Should I save for a down payment?
Absolutely. Just because you don’t necessarily have to make a 20% down payment on your first home doesn’t mean that you should eschew the process completely. Having a substantial down payment saved never hurts.
I have a low credit score. What kinds of loan programs are there for me?
If you go through the application process and make sure that your payment is in line with what you can fit within your budget (the typical recommendation is a mortgage that takes up no more than 25-33% of your household budget), then you’ll find it’s possible to afford your first home—and the process may be much simpler than you imagined
How do I get pre-approved?
In addition to the FHA loan program as mentioned in the previous answer, you should also look at your qualification for: the VA loan program, the USDA loan program, and even the Good Neighbor Next Door buyer aid program.
What should I do next?
Simple. Click any of our buttons above and find out if your first time home purchase can be as easy as we say it is here. Don’t worry about a low credit score, either—you’ll find that there are plenty of programs out there that can help.