Your Guide to Home Financing That Builds Wealth
Areas of Interest
The two most popular loan program for 1st Time Buyers is FHA and VA Financing. For a list of Pro’s and Con’s for them, please see below.
- Low down payment, FHA 3.5% down to max conforming loan amount by area. VA 0% down up to $2m in loan (subject to change without notice).
- Little to no reserves required.
- Able to obtain credit from lender to cover all of the closing costs while keep the rates lower than that of conventional financing.
- Allows less than perfect credit. Some lenders will allow down to a FICO score of 600.
- No MI on VA Financing
- FHA and VA Funding Fee
- MI on FHA Financing required
- Impounds are required
- Some realtors find these programs are less competitive than conventional financing especially in a sellers market.