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Independent Mortgage Broker Sheffield

First time home buyer start program

There are many challenges for the first time home buyer; One of the biggest ones comes with the required upfront payment. First time home buyers usually don't benefit from second home buyers. Second time buyers often have capital from the sale of their home or investment that they can withdraw for an initial payment. Fortunately, most countries have different savings programs. In the state of Ohio, prepayment assistance programs serve a diverse group of people. The state of Ohio's most comprehensive prepaid aid program is offered by the Ohio Housing Finance Agency (OHFA). The OHFA Advanced Assistance Program offers 2.5% of the sale price for Advanced Assistance. There are many first-time home buying programs offered by OHFA which have some limitations. These restrictions include, but are not limited to, income, selling price, and lack of home ownership in the past 36 months. In addition, all first-time buyer programs require the buyer to borrow the property. OHFA's various programs include first-time homebuyers, veterans, police and other emergency personnel, healthcare workers, teachers, and second-time homebuyers who purchase from owners in designated Ohio areas. The OHFA program requires both homebuyer training and homebuyers to live in the property for a certain period of time.

If this is the first time you are ineligible  Independent Mortgage Broker Sheffield for the OHFA Early Payment Assistance Program or another home purchase assistance program, there are alternative mortgage financing options that can be equally beneficial for homeowners with limited savings.

FHA funding

FHA funding requires a minimum of 3.5%. FHA allows a down payment to cover expenses contributed by family members or nonprofit organizations. This type of financing requires upfront and monthly mortgage insurance. FHA only provides funds to owners.

Veterans Administration (VA)

U.S. Army volunteer veterans or active personnel who meet certain qualifications are eligible for VA mortgage funding. This type of financing has no monthly mortgage insurance but requires a pre-financing fee unless the veteran is disabled.

USDA funding

The USDA loan program is offered by the US Department of Agriculture. This type of loan provides zero financing for owner-occupied properties in certain rural areas and is subject to income restrictions. USDA loans have upfront payments and monthly fees. There are two types of USDA loans including secured home loans and direct loans.

Conventional financing

Conventional mortgages are loans that are not supported by the government. Suitable conventional loans are backed by Fannie Mae or Freddie Mac. For suitable conventional loans, the minimum prepayment is 5%. Private Mortgage Insurance (PMI) is required unless there is a 20% down payment or a homeowner refinance with 20% equity.

It is always in the best interest of the original home buyer to get pre-approval before looking for a new home. A qualified loan officer should be able to explain the prepayment program and the type of loan you qualify for.