- September 27, 2019
- Posted by: Michael Meyer
- Category: Connecticut
1st Time Mortgage Options
Looking for your 1st Time Mortgage can be exciting but overwhelming at the same time. There are many different loan options for first time mortgage borrowers. For example, you may need help with a down payment or prefer low monthly payments. Certain loans may fit your needs better than others.
100% Financing Options:
VA Loan: If you are a veteran or active duty, you may qualify for a loan from the U.S. Department of Veterans Affairs. A VA loan is a great program because there’s no money down required, no monthly mortgage insurance, and it is guaranteed by the government. In order to qualify, you’ll need a Certificate of Eligibility, good credit, and enough income.
USDA Loan: The United States Department of Agriculture (USDA) offers loans with 100 % financing. A USDA loan is not just for farms and rural areas- many suburban areas in Connecticut actually qualify for the USDA program. You even can include eligible home repairs and improvements in your loan size. However, this loan type does have income caps that you will need to discuss with your loan officer.
CHFA Loan: Connecticut Housing Finance Authority (CHFA) offers loan programs specifically for first time home buyers in the state. Qualified individuals must not have owned a home in the last 3 years. CHFA loans are broken up in a first mortgage and a second down payment assistance loan. Like USDA, there are income limits. CHFA interest rates are typically offered below market interest rates. CHFA also offers incentives to police officers and teachers.
Low Down-payment Options:
FHA Loan: The FHA allows a down payment of just 3.5 percent of the loan amount. A great thing about FHA loans is that the down payment can be entirely from gift funds. Lower credit scores are allowed with this program. There is an up-front mortgage insurance premium due at closing as well as a premium for the life of the loan.
Conventional Loan: Conventional Loans also allow for smaller down-payments than the 20% most people believe. These types of loans come with No Monthly PMI Options and are really driven by a borrower’s credit score and monthly income.
Call me today for a free consultation at 860-876-0572. I will work with you every step of the way.