Professional Mortgage Solutions in Rego Park, NY is here to help great first-time homebuyer programs. The Federal Housing Administration (FHA) offers some great loans tailored to the needs of a new homeowner. Most of these loans come with low down payment thresholds and an applicant approval process—making buying a home more accessible. If you or your spouse served our country and qualify, you can even get no down-payment mortgages from the Department of Veteran Affairs. Read below about all the fantastic benefits these agencies provide.
Getting Qualified for an FHA Loan
As you look to own a new home, saving money and improving your credit score should be a top priority. However, having the right finances to qualify for a mortgage may not be as far off as you think. Lenders approve an array of homeowners for just a 3.5% down payment or more. Interest rates are reasonable too, especially if you have good credit. Even if you have a lower credit score, other factors can help you qualify. Just make sure you are not are delinquent on taxes or student loans owed to the government—for government lenders, this is a deal breaker. The home must also meet FHA home inspection requirements.
Below is a list of items to gather before you go to apply for an FHA Loan:
- At least two years of W-2, 1099, or other income statements;
- At least two years of tax return statements;
- Adequate documentation of your current income;
- At least three years of tax returns and a year-to-date profit/loss statement (if you own a business or are self-employed).
Applications for FHA Mortgages
Here is a list of general eligibility requirements for an FHA Loan approval:
- Have a credit score of 580 or higher, though if you save for a higher down payment, a lower credit score may be accepted.
- Have a down payment savings of at least three percent from an eligible source (a savings account or a gift, though the gift cannot come from someone who will benefit financially from the sale of the home.)
- Have a clear history from Credit Alert Interactive Verification Reporting System (CAIVRS), which helps show that you do not owe other government debt.
- Have the home you purchase must also be your primary residence, or the primary residence of a family member.
- Have the ability to provide mortgage insurance, which may be included into your monthly payments.
VA Loans
The Department of Veterans Affairs (VA) administers VA loans. This program can help people who serve our country purchase the first home that they have earned through their service. So many benefits exist with using this government-backed program. VA Loans started after the Second World War to help military and their families find the American Dream. Many qualifying Veterans are able to secure 100% financing when they apply.
Professional Mortgage Solutions can show you beautiful Rego Park, NY homes and help you learn if you can get pre-approved quickly for a first-time homebuyer program. Contact our staff today with any questions!
