First Time Home Buyer Guide Contents
First Time Home Buyer Guide - 13 Article Series
Common Mortgage Terms and Definitions
Down Payment and Credit Requirements
Loan Program
Minimum Qualifying Requirements
Minimum Down
- As low as 3% to 5% down payment (owner occupied)
Minimum Credit
- Minimum 620 credit score requiredNotes
Notes
Conventional mortgage loans are a great option for first time home buyers with great credit scores. Between Fannie Mae's HomeReady, and Freddie Mac's Home Possible programs, Conventional home buyers can get into a home with as little as 3% down payment. Less if you are also eligible for buyer assistance or a mortgage credit certificate.
Minimum Down Payment
- As low as 3.5% down payment
Minimum Credit Score
- Minimum 560 credit score (lower with 10% down)
Notes
FHA mortgages offer the most accessible and most flexible underwriting options for most buyers buyers. The ability to manually underwrite a FHA mortgage make this program one of the most flexible options available on the market today.
Minimum Down Payment
- No down payment required
Minimum Credit Score
- Minimum 560 credit score
Notes
VA mortgages are only available to eligible military personnel. Contact us for an introduction to an expert if you do not already know someone. These programs are by far the most flexible and forgiving of any loan on the market. With zero down payment and no mortgage insurance, you cannot beat this option if you've served honorably in the U.S. Military. Thank you for your service!
Minimum Down Payment
- No down payment required
Minimum Credit Score
- Minimum credit score is 640
Notes
USDA rural development loans are available if your property is located in an eligible area. Borrowers must qualify using USDA family, qualifying and ability to repay income limits calculations.
Minimum Down Payment
- 20% is typical for depository institutions. Portfolio lenders may consider as little as 10% down payment.
Minimum Credit Score
- Even though underwriting guideline details will vary from one lender to another, minimum credit scores tend to come in at 680 in the low end, and options really open up over 700.
Notes
Jumbo mortgages are not typically a first time home buyer loan. They are much more strict in terms of down payment, debt to income ratio, and reserves required to qualify. For first time buyers that do meet these qualifications, a Jumbo mortgage can offer flexible terms and low rates.
There are also many great Portfolio loan options if you cannot fit in the box laid out by most depository jumbo lenders.
Minimum Down Payment
- Portfolio lenders may consider as little as 10% down payment. The average down payment on a portfolio loan is 25%
Minimum Credit Score
- Portfolio loans offer many solutions for almost any credit grade. While you can get a Portfolio loan with a credit score below 600, it will require a large down payment to offset the risk.
Notes
There are many great Portfolio loan options if you cannot fit into the guidelines of traditional financing.
First time home buyers that are self employed may find a portfolio loan that they you can live with if your tax write offs make full income documentation impossible.
