First time home buyers. Quite a few people that are looking to buy a home for the first time are completely confused about the mortgage process, what’s available. There are special loans for first time home buyers and that’s really some of the common questions we get. First time home buyers and what’s available for them when it comes to mortgages and purchasing a home. Generally, first time home buyers have a minimum down payment. They’re younger, they just graduated college or they’re just starting their careers and they haven’t saved up 20% down payment for a mortgage. A great product for them is going to be FHA, it allows a minimum of 3.5% of the purchase price. That would be their minimum investment. Another benefit of that is that 3.5% could also be a gift from a family member, if mom or dad or another family member is willing to help them out.
Generally, when first time home buyers come in, that’s the big thing to them is going to be a down payment. They don’t have a down payment and FHA is going to be able to help them with. Also, first time home buyers, say you have someone that has just graduated college and has one year on the job, first time home buyer programs are going to allow that person to get a mortgage by showing documentation of their college degree and they’re working in the line of work where they got their degree in. That’s another benefit of things we can work out with first time home buyers.