First Time Home Buyers Loan

[Tyler Goulden]

I have a buddy that's looking to buy a home to use as an investment several years down the road not immediately. He asked me about the first time home buyers loan which I know nothing about since I've mainly been studying FHA/203K and hard/private money lenders. So I told him I'd get back to him. If anyone knows the requirements to qualify, term lengths, rates, and down payments and any other info that would be greatly appreciated. Thanks in advanced everyone.

[Shawn Mcenteer]

It will vary to the individual. Consistent employment, good credit, low debt to income ratio will increase options and lending power. You can talk to your pal about FHA, since you are familiar with those guidelines, as a possible option. Another option, and the one I am currently using is a 10% down conventional mortgage. What makes it more desirable for me is PMI is much lower and will be removed once I hit a certain equity mark. With FHA PMI stays unless you refi. I must put more money down but i did have the option to put down as little as 5% with my lender. I choose 10% because it gave me an enjoyable rate and minimal PMI.

The advice I alway encourage is to speak with local lenders. Make sure you friend does not go to only big name lenders. Have him shop around and find lenders that offer investor friendly options because these lenders cater to a crowd that is not ABC. What I find is the major banks and lenders get so many walk in leads from everyday home owner they tend to not have many options for investors or the time to work with an investor.