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First Time Home Buyer Programs

Posted by:  Chip Poli
2011-10-21 09:59:05

Over the last few years home ownership levels have dipped about 4% from the all time high of over 70%.

The disappearance of high risk 100% financing and 80/20 financing has created the impression that new home buyers are essentially, left out in the cold.

At Poli Mortgage Group we want you to be aware of the first time home buyer programs that do still exist today. In an effort to do our part and increase awareness of the available products and programs that exist today for First Time Home Buyers, we are going to release a series of articles that detail the various options available.

The fact is that we are at an intersection of low mortgage rates and reduced home values that rarely presents itself in the marketplace.

This confluence of events has created the ultimate buyers market and it is important that you don’t miss out.

First Time Home Buyer Programs Available


Let’s discuss a few of the various options available to you if you intend to realize the American Dream of Home Ownership in the near future.

First Time Home Buyer Programs Overview

Federal Housing Administration


First Time Home Buyer ProgramsCommonly known as FHA, the Federal Housing Administration has been a standard for First Time Home Buyers since 1934. The FHA Program falls under the Department of Housing and Urban Development (HUD).

FHA is actually an insurance program and not an actual funding source. The insurance program is open to select mortgage lenders who meet certain financial and production criteria.

It is commonly thought that FHA Financing is reserved for low to moderate income households, this isn’t true, FHA is open to all.

Down Payment Requirement: 3.5% of purchase price

Property Types Allowed: 1 to 4 Family Owner Occupied Properties

Maximum Loan Amounts: County by County check your county here

Transaction Types: Purchase and Refinance

Interest Rate Characteristic: Lower than Conventional Financing

Underwriting Process: Manual or Automated

Home Improvement Funds at Purchase: YES up to $35,000

Mortgage Insurance: Yes MI is required

FHA has increased its mortgage insurance requirements in recent years in order to preserve the integrity of the self funded insurance pool.

While the FHA Underwriting process is very similar in some ways to conventional financing, there is a certain amount of “common sense” that the underwriter is allowed to employ during the underwriting process.

For full details and to see if you qualify for FHA Financing from Poli Mortgage please contact one of our mortgage professionals.

Veterans Administration Mortgages


First Time Home Buyer ProgramsCommonly known as a VA Mortgage, the VA Loan is designed to provide 30 year fixed rate mortgages to service men and woman who are active or, have been honorably discharged from the military as well as their surviving spouses.

Down Payment Requirement: 0.0% of purchase price

Property Types Allowed: 1 to 4 Family Owner Occupied Properties

Maximum Loan Amounts: Varies by Location check your eligibility here

Transaction Types: Purchase and Refinance (refinance in certain circumstances)

Interest Rate Characteristic: Similar to Conventional Financing

Underwriting Process: Manual or Automated

Mortgage Insurance: No Monthly MI – Loan Insured via “Funding Fee”

The VA Funding Fee is calculated using a formula which varies dependent upon a blend of loan type and active status:

First Time Home Buyer Programs


It is important to remember that the VA Funding Fee is automatically financed within the loan amount and then paid by the lender to the Department of Veteran Affairs for deposit in the VA Insurance Pool.

The first step in determining your eligibility for a VA Home Loan is to secure two documents:

1. DD 214 Certificate of Release or Discharge

2. COE or Certificate of Eligibility

The best option is to contact a Poli Mortgage Professional and he or she can guide you through the entire process.

USDA Rural Housing Program


First Time Home Buyer ProgramsThe United States Department of Agriculture provides a mortgage guarantee program to individuals who purchase a home in an area deemed “rural” by the agency.

The primary benefit is that the program does allow for 100% financing to first time home buyers.

The program does have certain loan size and income limitations and you should check with a Poli Mortgage Professional to determine your personal and property location eligibility.

Down Payment Requirement: 0.0% of purchase price

Property Types Allowed: Single Family Owner Occupied Properties

Maximum Loan Amounts: Varies by Location and Income

Transaction Types: Purchase Only

Interest Rate Characteristic: 30 Year Fixed and Market Driven

Underwriting Process: Manual or Automated

Mortgage Insurance: No Monthly MI – Loan Insured via “Funding Fee”

You should check with a Poli Mortgage Professional in order to apply and verify your income and property meet certain requirements.

Fannie Mae and Freddie Mac Programs


As always Conventional Conforming First Time Home Buyer Programs are available and underwritten in house at Poli Mortgage.

Conventional Conforming home mortgages are available to financially responsible borrowers and the credit requirements have tightened slightly in recent years.

Poli Mortgage Funds over $1 Billion in conventional mortgages each and every year.

For the absolute best rates and service please consider Poli Mortgage for all of your financing needs.

At Poli Mortgage we are dedicated to providing First Time Home Buyer Programs to all income levels, races, genders and creeds. Poli Mortgage is Dedicated to, The American Dream of Home Ownership.

Poli Mortgage Group - Rates. Integrity. Service.


866-353-POLI or www.PoliMortgage.com

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