First Time Home Buyers – Stress Free Mortgage

Did you know that 50% of people looking to buy a home in the market currently are First-Time Home Buyers (FTHB)? Even if you have owned a home in the past, a FTHB is considered as anyone that has not owned a home in the past 3 years. There are benefits for a FTHB which can consist of down payment assistance as well as lower rates, depending on your income and the County in which you will be purchasing.
For example, if you are purchasing in Los Angeles county and your income is less than $126,400, your interest rate can be lower by nearly half a percent, depending on your credit score.
There are many common misconceptions when you are a first-time buyer, so let me help to dispel a few of those.
1. You still need a 20% down payment. False! You can purchase with as little as 3% down and if you can get down payment assistance, then you may not need any funds to purchase.
2. CalHFA is the only down payment assistance program – False! There are other lenders that do have down payment assistance programs that may fit with your situation. It is always worthwhile to have a mortgage professional check out all the potential programs available to you if you don’t have enough funds for a down payment.
3. All down payment assistance programs require the funds to be paid back. False! Many of the programs for down payment assistance set up those funds as silent 2nd mortgage that has payments deferred until you either refinance or sell your home. However, there are some that are have a forgivable 2nd, so after you meet their requirements, you don’t have to pay those funds back.
Reach out to Stress Free Mortgage to hear all of your options and what programs are available with your situation.​