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Many of Royal Banks of Missouri’s home loan programs have been specifically created for first time home buyers. With low down payments and approval guidelines that make it easier to qualify, first time home buyers can be sure to obtain an affordable loan option that fits their financial situation.
At Royal Banks of Missouri, we offer a wide variety of first time buyer programs to local first time buyers. Learn more about some of the more popular first time home buyer loans before you apply by reviewing the information below.
What is a First Time Buyer Loan?
Many people dream of owning a home, but the home loan process can be confusing for many first time home buyers. Mortgage lenders offer first time buyers with many home loan options and assist the buyer in finding the best home loan for them. First time home buyer programs can offer lower interest rates, low down payments or reduced taxes.
FHA Loans for First Time Buyers
The federal government believes that everyone should have the opportunity to buy a home, so they have developed a loan program to assist homebuyers that have a little, or no, down payment through the Federal Housing Administration (FHA). To learn more about these loan programs, visit the FHA Loan page.
Who is Eligible for a First Time Buyer Loan?
First time home buyer programs are available to those who have not owned a home for the past three years and are designed to help borrowers who may not have enough money to pay the full cost of the down payment or the closing costs on a mortgage.
Community Home Buyer Programs
The FHA loan program allows a reduced cash investment by the buyer of 3.5 percent, which can be paid with from a variety of sources. Closing costs and prepaid expenses (such as upfront homeowners insurance premiums and escrow account funds) can come from gift funds, a grant or seller assistance up to 6 percent of the sale price. Some down payment assistance programs require the homebuyer to attend a Homebuyers Education program prior to be approved for the grant.
What is Escrow?
Escrow is a deposit of funds, a deed or other instrument by one party for the delivery to another party upon completion of an event. In simpler terms, escrow is where the transaction changes hands and prevents the seller from not receiving the money from the sale and prevents the buyer from not receiving the home that was purchased.
Mortgage Credit Certificates
A Mortgage Credit Certificate or MCC is a certificate awarded by your local or state government agency authorizing the home loan borrower to take certain federal income tax credits. The credits awarded help free up funds and make the monthly home loan payments more affordable for the homeowner. First time home buyers are typically the candidates eligible for an MCC but in special cases your home loan advisor may waive this requirement. Income and purchase price requirements also vary state to state and should be covered in conversations with your home loan representative.
Contact Royal Banks of Missouri to discuss your best first time home buyer options by calling (314) 878-7272. |
