Hi everyone. This is your Tampa Bay Realtor Lance Mohr and in this video, I’m going
to go over first-time homebuyer programs.
So if you're a first-time homebuyer whether you have good credit or not so good credit.
Whether you have a down payment or no down payment you're going to love this video.
So before I get into the five different programs.
Let me just tell you on all these programs if there's a down payment involved you could
always get a gift from a relative for your down payment and also your closing costs also
with all these programs.
You could ask the seller to pay part or all of your closing cost.
So let's start off and talk about the first loan which is an FHA loan FHA stands for federal
house and administration now this loan program is insured by the government which makes it
great they've been around since the 30s.
It's a really good program and there are some definite advantages to the FHA loan the first
is it has a low down payment of three and a half percent.
The second is if you don't have really good credit that they could be for you because
house at the time of this recording their credit scores will go down to 580.
Which is incredible now the downfall on an FHA loan if you have mortgage insurance that
will never go away so if you have the loan for five years or ten years or 30 years.
You're stuck with the mortgage insurance.
So you may want to know depending on your situation look at conventional or another
loan program because of that reason but if not if they chase a great way to go now I
want to say one thing if you don't have great credit scores.
So let's say you have a 585 credit score.
You have a 620 credit score that isn't really good and you go to a lender and the lender
says well we're going to charge you more of an interest rate because there you have low
credit scores go to a different lender remember this loan is insured by the government.
So there's no liability for the lender.
So if they do say that they're just trying to get more money because there's a lot of
lenders out there that are not going to do that.
So let's talk about the VA loan VA is a loan also insured by the government its Veterans
Administration now the nice thing about VA and in my opinion, if you are a veteran if
you do qualify for a VA loan.
It's the best loan hands-down like FHA the interest rates tend to be a little bit more
competitive than conventional but with the VA loan, you have no down payment you also
have no mortgage insurance you have a one-time funding fee.
So you're using your VA eligibility for the first time your funding fees going to be a
little lower if you use it the second time or further or more your funding fees going
to be slightly higher but it's a one-time fee that can be rolled into your mortgage
if you're a disabled veteran your funding fee and you could verify this.
It’s pretty much going to be waived.
So there's a lot of advantages to VA it's just, in my opinion, a great loan program
because you don't have a down payment you'd have the seller pay all or part of your closing
cost and the interest rates really good the third alone is your just your regular conventional
loan then you may Freddie Mac.
Now there's a lot of variables with these you could have to get into some that have
5% down payment some that have 3% down payment their interest rates are slightly higher at
least at this time than some of the government loans like the FHA and the VA but they're
a very good option.
They have what's called mortgage insurance it's really private mortgage insurance because
unlike FHA which is mortgage insurance these are private companies, not the government
who's ensuring a loan in case of default.
So the less of a down payment you put the higher your mortgage insurance is going to
be the more of a down payment.
You put the less the mortgage insurance is going to be now when you get to around the
eighty percent loan to value twenty percent equity.
You can just call the bank to talk to them about removing the mortgage insurance which
is very beneficial.
So if you're going to live in the home a long time or maybe buy it and rent it out this
is a great way to go so I would definitely look at a conventional loan they're not going
to be quite as good on the credit and some other stuff as maybe in FHA all these different
loan programs have their pros and cons.
So I want to tell you right now you need to really get a good loan officer in your area
wherever you live.
If you're in the Tampa area if you're in the Florida area I'll put a link above can buy
a loan officer he works all throughout the whole Florida area he's fantastic.
So the fourth program I want to talk about is USDA.
USDA is it's a program it's from the government.
Now, this is more for rural homes so if you're in the nucleus of a city this isn't going
to work for you if you're in more of a rural area you would probably be surprised what
they consider the rule.
So it changes all the time but what I'll do on this is I'll put a link below and you could
go to it the USDA link and you can check this loan program out.
It's a really good program it allows you to get into a home with a hundred percent financing.
So no down payment so it's definitely something that you should look into if you're in a rural
area.
The last one I want to talk about is more bond money assistance for people who don't
have a lot of money and what I'm going to do I don't have any relationship to this link
it happens to be a link that's very useful in our MLS and what I'm going to do is I'll
put it down below the down payment assistance link.
So there's a lot of down payment assistance programs all over the United States something
like 86 percent of them have funding and if your first responder like a police person,
a fire person, a paramedic they have certain availabilities for you that other they don't
have for other people also if you're in the military or in the education like a school
teacher you definitely want to look into that but what you could do is you could just go
to this link fill out the information because if they're gonna want to know where you live
they're gonna want to know how much money you make how big your family is and then what's
going to do it's gonna give you all the programs that are available to you.
Now you will have to do a little legwork on your end.
Again this isn't really an affiliation with me I just want you guys to have this so you
could use it but you'll have to go to the different banks and do a little bit of due
diligence on your side get in a whole lot of the different lenders on these different
assistance programs and reaching out now one of the things is when it comes to this type
of money.
Whoever's lending the money whether it's the county whether it's the state what they're
going to do is they're going to mandate the lender that you have to use.
They might have a program.
They might have one lender they might have three lenders and they're usually bigger companies
like Regions, Bank of America, Wells Fargo etc.
So if you have a broker they're probably not going to be working for this program right
here and on this but again the link is below, check it out.
If you need down payment assistance there's a lot of money out there for people I hope
this video helps you if you have any questions let me know.
I'll do my best to answer them but the best thing that you could do when it comes to if
you're a first-time homebuyer and you want to get more information on the programs to
reach out and talk to a loan officer.
Talk to someone who really knows what they're doing.
Talk to your real estate agent and if you're looking for a realtor.
I'll put a video up here on how to choose a real estate agent that really knows what
they're talking about.
I hope you have a wonderful day.
If you like this video do me a favor to share it and give me a thumbs up.
I wish you the best of luck.