Financing Your Home
When it comes to financing your home purchase there are many options for you to consider. Even if you have poor credit there is still ways to fund your purchase. First time home buyers have a handful of programs to aid them as well. Qualification factors and program details change periodically so it is always best to speak to a qualified lending professional. If you need a lender please contact me and I will be happy to connect you with a lender that best fits your needs. Now lets take a look as some of the many financing options available.
- FHA Loans allow for credit scores of 580+ with as little as 3.5% down. You may also have available grants to help with the down payment or be allowed seller concessions to help with closing costs. People with lower credit scores may still qualify if they are able to bring a bigger down payment.
- USDA or Rural Development Loans offer borrowers up to 100% financing and allow for some seller concessions. They are geared toward lower income buyers. You may need a stronger credit score of 640+ to qualify so check with your lender to get the specifics. These loans are for qualified homes in certain areas.
- VA Loans are for military members (both active and veterans). These loans can be a sweet deal if you are eligible as they come with lower interest rates and up to 100% financing. They also don’t require PMI and credit is not an obstacle. The home you select however can be a challenge to qualify as there are strict guidelines for the condition of the home. No fixer uppers here.
- FHA 203k Loans Speaking of fixer uppers. This loan is designed for those who want to take on a project. You will not be able to do the work yourself but if you want to rehab a home to make it just how you like this might be an option. Be prepared, however, these homes take longer to close, you will need to find contractors who are willing to wait to get paid and you will be submitting a lot more paperwork throughout the process depending on the scope of the work needed to be done.
- First Time Homebuyer Programs and Grants Some communities, in an effort to attract or retain residents offer first time buyer grants or lower interest loans. Portsmouth and Manchester are a couple of towns that offer such programs in southern New Hampshire. You can get more information on HUD.
- Conventional Loans Depending on your credit score, income and down payment you may quality for one of the many conventional loan options. Some programs offer very low down payments as low as 2%.
- Seller Financing is sometimes possible if the seller owns the property outright and is willing to or interested in taking payments versus a lump sum at close of escrow.