First-time Homebuyer Programs are designed to help people who have never owned a home or people who have not owned a home in the last 3 years to achieve the dream of homeownership. These programs can provide give benefits such as low down payment, closing costs, or other associated costs. Programs generally require one to three years of stable employment and a good credit score to qualify.
There are so many programs that FTHBs often get confused about choosing the best one for themselves. This is where Drew Mortgage Associates, the best mortgage lenders in Massachusetts can help. Let’s get into the details of the available first-time homebuyer programs.
5 First-Time Homebuyer Mortgage Options
FHA loans are government-backed mortgages that are insured by the Federal Housing Administration. The FHA loan is a popular choice for mortgage borrowers because of its low credit score requirements, and low down payment requirements. It also has lower interest rates than other types of mortgages, and the interest rates can change over time. It also allows for a shorter term of up to 30 years, with most loans lasting 15 years before refinancing or selling the property. Drew Mortgage Associates, being the best lenders for the first-time home buyer programs MA, know the ins and out of FHA loans to the core. Feel free to get in touch!
CONVENTIONAL 97 MORTGAGE
A Conventional 97 Mortgage is a type of mortgage that is available for a 97% loan-to-value ratio. First-time homebuyers with excellent credit scores are eligible for this loan. This means that they have low debt-to-income ratios and low debt to assets ratios. It is a good option for FTHBs planning to live in the property, making it their primary residence.
VA loans are loans provided by the U.S. Department of Veterans Affairs to servicemen, veterans who have served in the armed forces of the United States, and their eligible surviving spouses. They are available to both active and retired military personnel. The loans can be used for home purchases, refinancing, or home improvements. The loan is designed to help veterans with a zero down payment requirement, low-interest rate, low closing costs, and no need for private mortgage insurance(PMI), and it comes with lifetime benefits, allowing to use the guarantee multiple times.
HomeReady Mortgage is a good high loan-to-value (LTV) conventional loan option for the FTHBs who qualify for the mortgage, yet a larger down payment is a challenge. This type of mortgage has minimal risk-based price adjustments, low rates, and reduced costs of mortgage insurance.
USDA Home Loans are a type of loan that the United States Department of Agriculture (USDA) offers to first-time homeowners with low- and moderate-income homebuyers who may not otherwise qualify for a mortgage. This loan is granted to homebuyers who are looking forward to making their property as a primary residence, located in a qualified rural area.
It comes with advantages such as no down payment, competitive interest rates, low monthly mortgage insurance, flexible credit score terms, the ability to qualify even if you already own a home, fixed-rate terms (15 years or 30 years), and more.
Get Your FTHB Loan With Drew Mortgage!
Drew Mortgage Associates is one of the leading Massachusetts mortgage companies. Our mortgage associates are experts in finding the best mortgage plans for our customers. They know what it takes to qualify for a loan and what kind of loan is right for you. They will also help you understand your options and find the best solution that meets your needs. Get in touch today and make your first home a reality!