Common Questions & Answers First Time Home Buyers
What programs do you offer to first time home buyers?
How long does it take to get a Pre-Approval Letter from Poli Mortgage?
If you apply online you will have a pre-approval letter within 24 hours.
If you call and apply over the phone you will have a pre-approval letter within 1 hour.
What paperwork should I have ready to get a pre-approval letter?
1. Current Paystubs
2. Last year's W-2
3. All assets statements - checking, savings, retirement and investment accounts.
4. All borrower's full names, social security numbers and full 2 years address
Will a pre-approval letter from Poli Mortgage cost me anything?
No, we will get you a firm pre-approval letter at no charge.
Do I need a house picked out to get a pre-approval letter?
No, the address on the letter can be TBD. The letter will be good for 30 days. Important to note that it is an actual PRE-APPROVAL not a PRE-QUALIFICATION letter, a pre-approval carries more weight with Realtors.
What types of properties do you allow for first time home buyers?
Single family residences, 2-4 family primary residences, condominiums, townhomes, row homes and co-ops if they are common to the area.
Can I buy a home with a Rent to Own Contract?
Yes, we do allow for properly documented rent to own contracts.
How much should I expect to put down when I apply for a first time homebuyer program with Poli Mortgage?
Down payment varies by program and credit score however, here are the average down payments required:
FHA: 3.5% of purchase price
VA: Qualifying Veterans can qualify to 100% financing
USDA: Properties that fall into the USDA Rural Housing Program qualify to 100% financing
Conventional: Conventional programs require a minimum of 5% down payment
What should my credit score be to qualify for a first time home buyer program?
A middle credit score of 640 for FHA and 660 for conventional financing.
Can any portion of my down payment be a gift from a relative?
Yes, our FHA program allows for all or some of your down payment to come in the form of a gift. Conventional financing does allow for gift funds however, the gift portion and your portion must cover at least 20% of the purchase price.
Are mortgage rates higher for first time home buyers?
No, our FHA 30 Year Fixed Rates are actually lower than some conventional rates.
Will I be required to have Private Mortgage Insurance if I don't put down 20%?
Yes, you will need Mortgage Insurance if the first mortgage is over 80% of the purchase price.
Are there ways to avoid mortgage insurance?
Yes, there are some circumstances where MI can be waived for instance, we can do a combination 80% first mortgage and a 10% second mortgage. Speak to one of our mortgage professionals for details.
Can I buy a 2 family or a 3 family and use the rental income to qualify?
Yes, FHA allows for the purchase of a 1-4 family as long as it is your primary residence and FHA allows you to use a portion of your rental income to qualify.
Do I have to be at my job for 2 years to qualify for a first time home buyer loan?
A 2 year history is required however, if you have switched jobs, we can use the old income. *If you were in school and then graduated we can use college as work history if you are in the same field you went to school for.
Can I buy a home if I am self employed?
Yes, we will need 2 full years of tax returns to verify income. You can find more information about Self Employed Lending Guidelines Here.
How much are closing costs for a first time home buyer program?
We pride ourselves on offering the best rates with no closing costs in most instances.
If I want to buy a "fixer-upper" can I do that as a first time home buyer?
Yes, our FHA Repair and Restore Program allows for as much as $35,000 in home improvements.
What if I want to buy it "as-is" and then fix it up?
We can help you with that as well.
More Resources for First Time Home Buyers: