How is buying a home better than renting? This is a common question from people considering owning their first home. The answer is easy. It is undeniable that it feels good to walk into your home and know that it is yours, that you own it. There are financial benefits as well, but somehow the feeling of ownership usually is the number one reason for buying a home. Are you interested in discovering the feeling that comes with owning your own home? Fill out our free short form to contact up to four lenders today about programs for first time home buyers .
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FHA loans are funded by private lenders but are insured by the Federal Housing Administration in order to encourage lenders to give loans to applicants who would not generally meet their standards. This is an avenue for first time buyers who would not usually qualify for a fixed rate mortgage. FHA loans are a desirable since they require low down payments and have low fixed interest rates.
Most people looking for a home and planning to live there longer than seven years apply for fixed rate mortgages. These mortgages can have stiff qualifications. There are some who fear they can not meet these qualifications and continue to rent instead of buy. However, fixed rate mortgages are not the only option available. Also, first time buyers should not be afraid that they do not have enough money for a down payment or enough income for a monthly payment. There are loans available for first time buyers that can help even applicants with poor credit to obtain a loan.
Adjustable rate mortgages have more flexible qualifications but less stability. The interest rate is not fixed and will change as the market changes. This may feel like a risk, but it is possible for an individual with an adjustable rate mortgage to wind up owing less than one with a fixed mortgage. This type of loan is great for first time buyers who are not sure if they will remain in the home longer than seven years or do not qualify for a fixed rate mortgage.