Millennial Home Buyer Tips:

We offer millennial home buyer tips for first time home buyers.  First off, it is a myth that you the millenial home buyer needs 20% down for your new home.  Secondly, it is a myth that you won’t qualify if you have student loan debt or even medical or non medicall collection items.  There are loan programs out there that can help you.  We will discuss them in more detail further down in this article.  It is also a myth that you will need you parents help in qualifying for a new home mortgage.

No Money Down Millenial Home Buyer Loan Programs:

There are two true no money down loan programs that do not incur any extra loan fees.  The first loan program is the VA loan and the second one is the USDA Rural Housing loan.  The VA loan not only requires no down payment but also has no monthly mortgage insurance.  Borrowers can qualify with a fico score as low as 580.  The USDA Rural Housing loan is only available if a borrower buys a home in what is defined as a rural area by the Department of Agricultural.  This program requires a middle fico score of 620 or higher and has income restrictions.  Both of these programs offer low rates with no hidden fees or extra closing cost fees.

Other Down Payment Assistance Programs:

Yes, there are down payment assistance programs available on a first come first serve basis every year.  However, like everything in life there is a catch to these programs.  What’s the catch?  First off, not all lenders accept these down payment assistance programs.  Therefore, interest rates tend to be higher as well as closing costs.  Even if the seller is paying the fee for you think of it this way.  If the seller was not paying this fee for you, the cost of the home would be cheaper.  Thus, your total monthly mortgage payment would be cheaper because your loan amount would be lower.  Some of these programs put a lien on your home for a certain period of time.  What does that mean?  That means you can’t refinance or move before the end of this time period or you owe the money back to the agency that provided the funds upfront.  Why is this bad?  If interest decline, you will not be able to refinance and take advantage of a lower rate and a lower monthly mortgage payment.

Average Home Length:

Furthermore, most new millenial home buyers tend to stay in there new home no more than seven years.  Unfortunately, these down payment programs require you to stay in the home longer than this.  You see most first time home buyers will be in a much better buying position in 5-7 years. At this point, they will need a bigger home to accomdate their growing family. Many of you will want a newer home with more amentities, more bedrooms & bathrooms, a bigger backyard, and be in a better school system.  THE BOTTOM LINE IS MAKE SURE YOU READ THE FINE PRINT ON THESE DOWN PAYMENT ASSISTANCE PROGRAMS BECA– USE THERE IS A CATCH.

Other Loan Options:

We offer loans with only a 3% down payment if you have a high enough fico score.  This loan product is a Conventional loan.  It does have stricter loan qualifications compared to an FHA loan.  We also have a 5% down Conventional loan program. If you have bad credit, high student loan debt, or collection items than an FHA loan program is your best option.

FHA Loan Products:

The FHA loan product helps first time home buyers who have student loan debt, medical or non medical collection item debt, or low fico scores.  This program requires a down payment in the amount of 3.5% of the purchase price.  Don’t have any down payment?  This program allows an immediate family member such as your mother, father, brother, or sister to give you your down payment money during the loan process.  However, the money has to be documented and papertrailed.  Therefore, please do not accept cash from a family member.  This will be a problem.  FHA loans also allow for fico scores as  low as 580.

Employment Requirement:

One does need to be employed for the last two years and have two years of filed tax returns.

How Do I Know Which Loan Program Is Best For Me:

Don’t worry.  We will walk you through the process. We know your millennials like to do everything online.  However, this is where we will have several one on one conversations about your current goals and future goals.  Together, we will figure out a game plan that works best for you and your family.  We take the stress out of the process for you.  We have been doing this for 20 years.  You don’t have to worry about running the mortgage calculator to determine your affordable monthly mortgage payment.  Together, we will figure out an estimate of your comfortable monthly mortgage payment.  Then, we will also figure in a cushion so that as life’s unexpected bills pop up you  will still have enough money left each month to pay these expensives.  You never know when the car will break down or have an unexpected medical bill. That’s why it’s important not to be maxed out on your mortgage payment.

How Long Does It Take To Close On A Loan:

It takes anywhere from 30-35 days to close on a loan.  The faster you can provide us with your loan documentation, the faster we can close.  For every single day that you delay in providing us with the proper documentation, expect an extra delay in your closing.

Article 1: Millennial Home Buyer