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Many
home loan programs have been specifically created for first time home
buyers. These loans feature low down payments and approval guidelines
that make it easier to qualify. Some of the more popular first time
homebuyer programs are listed below. To get started immediately click here for our on-line application.
Return to Loan Programs
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Many
people dream of owning a home but the home loan process can be
confusing for many first time home buyers. Mortgage lenders offer first
time buyers with many home loan options and assist the buyer in finding
the best home loan for them. First time home buyer programs can offer
lower interest rates, low down payments, or reduced taxes.
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First
time homebuyers often experience the most difficulty amounting a
significant down payment and everyone should have the opportunity to
buy a home. For this reason the Federal government has developed two
loan programs to assist homebuyers that have a little or no down
payment. These programs are called the Federal Housing Administration
(FHA) and the Veteran's Administration (VA). These programs are not
solely intended for first time home buyers; your home loan advisor will
be able to determine if you qualify and if so which program is
acceptable for your needs. FHA and VA loans can be especially
advantageous when combined with a HFA or MCC first time homebuyer
program.
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First
time home buyer programs are designed to help borrowers who may not
have enough money to pay the full cost of the down payment or the
closing costs on a mortgage. These programs make obtaining a mortgage
more cost effective. There are even programs specifically for residents
of each state. First time home buyer programs are available to those
who have not owned a home for the past three years.
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Community
homebuyer programs reduce the down payment the borrower must pay to 3%,
which must be the borrower's own funds. The closing costs can be gift
funds, a grant, or seller assistance up to 3% of sale price. This type
of home loan requires the home buyer to take a class on home ownership
in their state. Upon completion of the class, the homebuyer will
receive a certificate that reduces the cash requirement and expands the
qualification ratios. Community homebuyer programs have been making it
possible for many people to have the opportunity to buy a home.
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Escrow
is a deposit of funds, a deed or other instrument by one party for the
delivery to another party upon completion of an event. In simpler
terms, escrow is where the transaction changes hands and prevents the
seller from not receiving the money from the sale and prevents the
buyer from not receiving the home that was purchased. Escrow is
important to both buyers and sellers during the mortgage process.
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A
Mortgage Credit Certificate or MCC is a certificate awarded by your
local government agency authorizing the home loan borrower to take
certain federal income tax credits. The credits awarded help to free up
funds and make the monthly home loan payments more affordable for the
homeowner. First time home buyers are typically the candidates eligible
for an MCC but in special cases that you may discuss with your home
loan advisor this requirement may be waived. Income and purchase price
requirements also vary state to state and should be covered in
conversations with your home loan representative.
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At 360 Mortgage Inc. our KANSAS CITY mortgage brokers offer a wide
variety of first time buyer programs to KANSAS CITY first time buyers.
First time buyer programs in KANSAS CITY can make securing a KANSAS
CITY home loan easier and more affordable. Contact your KANSAS CITY
mortgage lenders at 360 Mortgage Inc. to begin your first time buyer
loan.
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