As a first-time home buyer you have more loan options than just an FHA loan. Depending on your situation you may qualify for some other loan programs that offer advantages over an FHA home loans. Conventional Loan – If you have at least a 20% down payment then you should consider a conventional mortgage.
CalHFA understands that buying a home is a huge responsibility.. To help you get ready and get the most out of CalHFA's loan programs and assistance, outside your budget; there are other homes just waiting for the right new owner.
Best Bank To Get A Home Loan From The best rule of thumb is that you should not go for the price if the interest rate is at least two to three percentage points lower than your current loan. Do not get a new loan from them, unless they can offer you lower interest rates.Best Bank For Mortgage Loan 2016 fha mortgage rates versus conventional mortgage rates. Currently, many FHA mortgage rates are lower than conventional mortgage rates thus there may be a long-term savings to obtaining a FHA mortgage. However, it is important to comparison shop because some lenders may impose fees that may make some conventional loans more competitive.
Using the rent vs. buy calculator can help you see the cost of buying a new home and understand if it's a better choice than renting. Rent vs. buy calculator >.
Loans with lower or no down payment required like FHA loans are typically popular among first time home buyers. With an FHA loan, you only need 3.5% of the purchase price of the home as a down payment. Here are the down payment requirements for other types of home loans: 203K loans: 3.5% Conventional 97: 3% Conventional loans: 5% – 20%
100% financing home loans are essentially no money down home loans – they’re mortgages that finance the entire purchase price and eliminate the need for a down payment. Large down payments can be tough to save for with current housing prices, especially for first-time homebuyers, which has made 100% financing home loans increasingly popular.
A Conventional Mortgage is the only option when buying a 2 nd home or an investment property. FHA, VA, and the other loans require that the home you’re buying is your primary residence. First or second-time home buyers opt for a Conventional loan simply because the mortgage insurance can be cancelled once 78% loan-to-value is obtained.
Down Payment Options. Some states have awesome first time home buyer options that will allow you to borrow your down payment at a very low interest and it will work like a second mortgage for you. These programs make it possible to have a zero down option. Check out your own state’s possibility by going to my grants by state section on the nav bar to the left.