A first time home buyer loan from BrightPath is a great choice to make your dream of homeownership a reality. These programs usually offer lower than average down payments ranging from 0-5% of the home’s value. In most cases, these programs also include some type of mortgage insurance that can be structured in different ways to fit your needs. Here’s a look at some of the advantages of these programs.
Low Down Payments
The down payment is a cash payment you make toward the value of the home, and traditional mortgages require a 20% down payment. On a $250,000 home, that is $50,000. Most people can’t come up with that type of cash, and to help these borrowers, a number of first time home buyer loans require very low down payments or no down payments at all.
This saves buyers a lot of money. For instance, a 3% down payment on a $250,000 home is only $7,500. That is significantly less than $50,000.
Some first time mortgages even include assistance for down payments. Basically, the loan comes with a grant that you can use to cover the down payment. In some cases, these amounts can be used to cover closing costs, which are fees related to your loan.
Alternative Credit Histories
If you’ve never taken out a car loan or used a credit card, you probably don’t have a credit history. Unfortunately, even if you’ve always paid all your bills on time, not having a credit history can make it hard to buy a home. To lenders, no credit report can be just as bad or worse than a negative credit history.
To help buyers in this position, there are a number of first time home buyer loans that accept alternative credit histories. These credit reports include information related to rent, utility, and insurance payments. If you have a satisfactory record with those payments, you may be able to get approved for a mortgage.
Sometimes, even with a bit of help, it can be impossible to get approved for a mortgage on your own. A co-signer can help, but sadly, many lenders won’t accept a cosigner on your mortgage unless the cosigner plans to live in the property.
Luckily, with many first time home buyer loans, you can use a non-occupying co-buyer. That means your parents, grandparents, or anyone else who wants to help, can co-sign the mortgage and act as a co-buyer, but they don’t have to live with you.
First Time Home Buyer Loan Programs in GA,/h2>
To recap, here’s a look at just a few of the potential benefits of some of our first time home buyer loan programs in GA:
- No to low down payment options
- Alternative credit histories accepted
- Closing costs/down payment funding in the form of gifts or grants
- Non-occupying co-borrowers are allowed
- No cash reserves needed
- Loan may be fully assumable depending on loan program
If you would like to explore first time home buyer loans or other mortgage products available from BrightPath, please call us at 888-222-6003, or complete our simple form below. One of our experienced mortgage specialists will contact you.