A first time home buyer’s dream to purchase a house is no longer a difficult goal thanks to customized loans by the Federal Government to specifically meet unique requirements. These loans offer an array of benefits, however, qualifying for one is no walk in the park. You need to meet stringent requirements to qualify and accept certain limitations on the type of home you choose. Below is a list of the pros and cons that one should consider when considering investing in a first time home buyers loan.
First Time Homebuyers Loan: The Pros and Cons
Pros of First Time Homebuyers Loan:
1. Low Down Payment
A major benefit of this type of loan is a lower down payment, primarily if you’re low on savings, you can still afford to buy a house.
2. Fixed Rates
These loan programs are designed to absorb market fluctuations by protecting the buyers from various risks.
Waivers and concessions on interest, insurance, and underwriting make these types of loans quite affordable for first-time homebuyers.
Cons of First Time Homebuyers Loan:
1. Low Limits
These loans may not suit your financial capabilities if you’re looking for a higher loan amount or an amount equivalent to many common loans.
2. High Insurance Requirements
You might be required to take on the insurance mentioned in the guidelines of this loan program, which may not offer the same attractive features that a private insurer would.
3. Lack of Flexibility
You will be subject to stringent rules and restrictions, such as the using the house as your primary residence, or not every property will be financed by these loans. This lack of flexibility puts limitations on actively buying the home of your choice in a specific area.
If you’re a first time home buyer, hiring an expert will help ease your stress and save your time in the home loan process. Mortgage lenders can help you qualify for a home loan and pick the right program for your budget and needs. Drew Mortgage Associates is an approved mortgage company in Boston, Massachusetts and first time home buyers in Massachusetts can take advantage of their services at an affordable cost.