First Time Home Buyer Mortgage Programs 2019! Best Home Loans for First Time Buyers

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how's it going everyone mad lates and

welcome back to another real estate

video hey guys in today's video it's all

about first-time homebuyers and getting

you the best loan program the best

mortgage for your purchase of your

brand-new first home ever I'm lucky to

be joined with mortgage and loan expert

Sean Glennon from home savings and Trust

mortgage Sean how you doing today doing

all right man

I appreciate you having me on like I

said let me ride your coattails and to

start him yeah this guy he does amazing

work out of Fairfax Virginia so let's

dive right into today's content about

first-time homebuyer mortgage programs

because when I'm working with first-time

homebuyers they're always trying to

figure out what down what down payment

what programs are currently offered so

why don't we just touch a little bit

about the best programs out there for

first-time homebuyers in 2019

well if I'm a first-time homebuyer I'm

probably first trying to sort myself

into one of three categories that would

kind of say though most first-time

homebuyers fall into and I would say

there's probably a loan program to go

along with each of them I like the first

one will go to cash-strapped

first-time homebuyers yeah we were both

there yeah you want to buy a house

you're fresh out of college but you're

not making a ton of money you got

student loans to pay off and you just

haven't been save up that nugget well

luckily there are a couple hundred

percent financing options out there for

you we're in Virginia yeah right

I'm sure not everyone here is gonna be

bonding earth everyone pay attention

right now is not going to be buying in

the Virginia market but we have a

program called vhda Virginia Housing

Development Authority that offers a

first-time homebuyer program that allows

for 100% financing actually up to 101

and a half you can get basically after

you close a call space closing cost paid

absolutely absolutely and then you're

going to negotiate the rest of the

closing cost you coming to the table

with nothing I would imagine you know I

know I'm familiar with the DC and

Maryland areas as well they both have

kind of like a vhda equivalent I would

imagine that probably almost every state

or jurisdiction has something along

those lines that's kind of help so even

if you're not in the DC metropolitan

area there's most likely a program out

there that's a hundred percent down

or something very close to that I'd be

shocked if there wasn't so income limits

is are there income limits on that

property limits on that in terms of

price something along those lines there

are but it kind of goes hand in hand

that if you're searching for a program

like vhda that the income limits the

sales price limits probably won't apply

to you they're pretty generous in this

area you can go up to a $500,000 sales

price I believe you

right now it's one hundred and thirty

thousand dollars in income if you're

making much more than that if you're

looking at purchasing over five hundred

thousand you probably have enough money

saved up that you don't necessarily need

100% financing so that brings me into

category number two I've got a little

cash and I can put it down payment but

my credits not great mm-hmm

my debt to income ratios are really

stressed out I might need a cosigner to

help me a parent a sibling a girlfriend

boyfriend that would probably be FHA

okay it's probably the category can I

jump in real quick

you mentioned credit score and debt to

income ratio just in a general scheme

what what credit score do I need and

what debt to income ratio do it we don't

need to spend a lot of time on it but

just touch on those two things briefly

typically most banks overlays right now

about 626 2025 score for FHA make sure

you're getting that credit score

directly from a bank if you're

evaluating your situation a lot of the

stuff online the free credit pools

aren't always super accurate don't want

to say they're a complete sham but

there's not always super accurate debt

to income ratio that's the driver of how

much am I going to get qualify for my

monthly income Burres my monthly debt

burped and added to that debt is the

proposed mortgage payment if that's

stressed out that's getting high getting

outside the your capabilities for

purchasing a home FHA is gonna let you

go higher than any other loan program

okay so FHA and how much what

downpayment are we talking for every

three and a half percent as the required

amount for for FHA three and a half

percent okay so it's kind of like that

middle ground between 0% down and

No 20% more I would tell really a little

ground yeah you didn't major in math

yeah I did not so I think J is great for

that anything I want to touch on one

other point which is a cosigner because

I think that's really important with

vhda and with some of these other

programs that I might mention your

co-signers who it can be is limited if

they're living in the property if

they're occupying or not occupying

cosigner matters FHA it's kind of yeah

all good all across the board if you

have someone willing to co-sign the note

with you their full credit situation

income assets everything are going to be

included in equation so if that's you or

you feel like that might be you FHA

might be a very good offer yeah a lot of

people think cosigner is just for leases

just for rentals well you also have that

opportunity when purchasing a property

when purchasing your first home so 0%

down three and a half percent down what

would be another maybe your third

category my third category is the person

who's got a little cash we went over no

cash whenever a little cash but I've got

some some other little nuances problems

everything isn't crystal clear I'd go

with the third category I've got a

little clash and actually my situation

is not so bad I got pretty good credit I

don't need a cosigner my debt income

ratios what I'm looking for are within

my tolerance what I've been a

pre-approved for on my own conventional

loans came out with a specific that loan

program that I think was really meant to

combat a FHA and to be honest I've done

a significantly less FHA over the last

couple years because of Fannie Mae's

home ready program Freddie Mac has a

home possible program basically what

they are is three percent down okay I

mentioned programs typically five was

the required minimum for conventional

loans three percent down loan programs

that don't have to be a first-time

homebuyer but it follows similar

guidelines to that income limit sales

price limit that we talked about earlier

so it means that most of the time not

all the time first-time homebuyers just

fall yeah into that category but you're

going to be able to get a conventional

loan so you're going to get access to

probably with bang for your buck the

most attractive loan program PMI is much

more affordable

you can get rid of the PMI eventually

whereas FHA and VA CA you can't just

stuck with it

so there's definitely some attractive

some attractions to the conventional

loan program that FHA and your state's

first-time homebuyer program probably

wouldn't have but you need to be a

little bit more of the I don't wanna be

politically incorrect but a

well-qualified buyer to fall into that

category so you know you you can

certainly do the 0% down PMI is gonna be

there if you have a little more FHA but

it sounds like some of your client a lot

of your clients that are could be doing

FHA I've actually gone the conventional

5% down just because it's a better

program out there yeah the home ready

and the home possible have eaten up so

much of the FHA market really the only

reason that maybe lien FHA over that

loan program is my credits not great

yeah I need a cosigner or it could be

that your debt to income ratios to get

what you're qualified for like I might

say you might have a client that's

looking for that three hundred thousand

dollar condo and I say with FHA we can

make that work with the conventional

program we'd only get them qualified for

250 understood so it really comes down

to your exact position your credit score

or your debt-to-income that's not one

size fits all but I think that if you

think of yourself in one of those three

categories there's a good chance that

you fall on the s-parameters and Shawn

lists on mentioned a few of programs

home ready was the other one you

mentioned home right at home possible

are possible they're basically the same

thing I'm gonna list and link those in

the description below so if you're

wondering Oh what are the details of

that I'll let I'll have a few links down

there so you can go and check those out

I think we did a really good job thank

you of covering the basics of first-time

homebuyer mortgage programs out there

what I'll also do is put your

information below so you know if you

have a question or you want to reach out

definitely reach out to Shawn or myself

directly via email or just drop us a

comment in the description below for

Shawn and for myself thank you so much

for watching until next time create a

productive day

take care