Your refreshingly simple homebuying experience starts here.
Buying your first home is exciting, but it can also be confusing if you don’t have an experienced mortgage lender guiding you through the process.
Worried about a down payment?
It’s a myth that you have to put down 20% to purchase a home. There are several low down payment loan options available to first-time buyers, and a few that don’t require any down payment at all. Nothing. Zip. Zero.
Your Hamilton Mortgage Loan Advisor will work with you to see what you qualify for and get you the best loan deal possible.
Loan options for first-time buyers
A Conventional Loan is the most common and widely available mortgage option. If you have good credit, balanced income, low debt, and some funds for a down payment, this is a good option as your rate will be better than most other loan programs. 3% is the minimum down payment for a Conventional Loan.
An FHA Loan is a great option if you need a little extra flexibility when qualifying for a new home mortgage. A minimum down payment of 3.5% is required, and gift funds and seller concessions can be used to cover your loan costs.
If you are an eligible Veteran, a VA Loan offers numerous benefits including: 100% financing which means no down payment, no monthly mortgage insurance, and the ability to use a gift for your closing costs. It’s generally easier to qualify for a VA Loan than it is for a Conventional Loan. To check your eligibility, visit: https://www.va.gov/housing-assistance/home-loans/eligibility
A USDA Loan is a good option if you’re looking to buy in a rural development-eligible area. For buyers who meet the income guidelines for this type of loan, benefits include: 100% financing which means no down payment, low mortgage insurance premiums, and low interest rates.
Down Payment Assistance programs, or DPAs for short, are offered by state and local municipalities and provide first-time buyers with grants or low-interest loans to cover down payment and closing costs. Requirements vary by region – reach out to your state or local housing office about availability in your area. For a listing of local homebuying programs by state, visit the U.S. Department of Housing and Urban Development’s website.
Is it better to rent or buy a house? At some point, the question comes up in everyone’s life.
What’s the right answer? That’s up to you but buying a home has many benefits including building future wealth and equity, tax advantages, and the freedom to decorate and renovate as you please. To prepare for homeownership, it’s important to do your research on current market conditions and review your finances.