Your Guide to Home Financing That Builds Wealth

Areas of Interest

First Time Buyer Programs

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.

Pros:

  • 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

Cons:

  • 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.