First-Time-Home-Buyer-Programs are not just for first time home buyers. You too can be qualified. Read on:

“We do not have money for down payment” Yes I get that a lot from buyers who were qualified for a loan but just do not have the funds in hand for a down payment or closing costs. Don’t panic, there are programs out there and in fact I’ve closed a lot of transactions where my buyer didn’t need to put a single centavo on the table and was still able to pay off one year HOA/Condo fees.

Sounds too-good- to-be- true? Yes but it’s true, considering seller pitched in on closing costs. The Law of Equilibrium of course applies in one way or the other. Let’s face it, conventional loans require from five percent to 20 percent downpayment. Not all qualified buyers have that money in hand. An average home of $300,000 requires $15,000 down payment for example and about three percent closing cost or $9,000. We are talking $24,000 there; that’s a lot of money for most people who’re just starting. It does not mean if you do not have that, you cannot pursue buying a house. There are programs for first time homebuyers out there. First time homebuyers do not necessarily mean you are buying a house for the first time. You could have owned a home previously and still be considered a first time homebuyer. How? You could qualify as a first-time home buyer if you or your spouse hasn’t owned a home in three years. The term also extends to recently divorced persons who have only owned a home jointly with a spouse.

However, there are some other limitations to who qualifies. You might not be eligible for one of these first-time home buyer programs if your income exceeds a certain amount, you want to buy a more expensive property, or you plan to buy an investment or rental property.

FHA loans – Top of Form

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The Federal Housing Administration offers a program that allows first-time buyers to purchase a home with as little as 3.5 percent down. However, there is mortgage insurance required which is added on your monthly payments aside from principal, interest, tax and home insurance. FHA loans require you to pay mortgage insurance throughout the life of the loan unless you refinance. This is still ideal for those who are short on ready cash.

VHDA loans – this is a no down payment loan and a government program only in Virginia by the Virginia Housing Development Authority.   Qualified first-time homebuyers may receive a percentage of the purchase price to help with the down payment and will be included in the loan. This is what most of my clients lately are acquiring.

VA loans – As a veteran or active service member of the United States military, you qualify for 100% financing with a VA loan, which means no down payment and no need to purchase private mortgage insurance. Most reservists, National Guard members, and spouses of military members who died while on active duty may also apply. To qualify for a VA loan, you’ll need a certificate of eligibility and a good debt-to-income ratio, and you’ll have to meet VA and lender guidelines for credit score. Borrowers are responsible for paying a fee, but in certain situations like being disabled while in service, fees can be waived.

There are other programs out there and these are just some of the most utilize by potential buyers. Your best bet is to contact a reputable loan officer so you can discuss your personal and financial situation; they should be able to provide you a loan that best suits you.

Note: Jocelyn Porteria is a Realtor® licensed in VA. Top Producer of Fairfax Realty and earning Five-Star Reviews from her clients. She is a Certified Expert Negotiator and also earned a designation as an Accredited Staging Professional; ABR, Accredited Buyer’s Specialist; CDPE Certified Distressed Property and Short Sale Expert, For more info, visit her website at www.jprealdeal.com and on Facebook https://www.facebook.com/realdealconsulting. Call her at 571-432-8335 or email at realdealconsulting@yahoo.com for free confidential consultations.