Can you get qualified? Even without a substantial down payment saved, you’ll find there are programs—such as the FHA loan program—that make it possible for you to become a first-time home buyer.
Make Your First Home Purchase Your Best-Ever Decision
Take advantage of interest rates. There’s no guarantee that interest rates are going to be this low forever. By getting out of the renter’s game and locking in low interest rates, you can begin a lifelong journey of wealth building.
Use less money down than you imagined. The concept of saving up 20% for money down against a loan can scare some first-time home buyers. But we’ll explain why that doesn’t always have to apply to you.
What You Need to Know About First-Time Home Buying
According to some statistics, a majority of renters who want to buy a home don’t move forward because they’re afraid they don’t qualify! But there are plenty of programs that make it viable for lots of people—even those with poor credit—to qualify.
For many first-time home buyers, the main issue is coming up with the down payment. Many of those who would otherwise buy a home feel they would move their purchase timeline forward if they could make the down payment.
With some first-time home buyers’ terms, it’s possible to pay with a relatively small down payment, much smaller than the usually-expected 20%.
Home sales are as hot as ever, with available homes sometimes going off the market in as little as three weeks in some areas—or even less.
Find favorable terms. When you approach it the right way, your first home purchase can be a door to great terms that help you with your monthly budget.
2 Ways to Use Your FHA 203(k) Loan
Buy a Fixer-Upper (and Fix It Up)
Or... Renovate Your Current Home!
HUGE, HUGE, shoutout to my main man; Juergen Schmid from Western Capital Mortgage. We are still shaking our heads.Juergen drove this streamline effectively, professionally, and meticulously to the finish. There were no surprises, no appraisal, no money out of pocket. Juergen, Jacqqueline and I cannot thank you enough for all the hard work. If you want an honest, professional experience in a rate reduction for your current mortgage, call Juergen. With rates the lowest they have ever been; It is absolutely a no brainer and if you want to call me first, send me an IM and I will give you my cell.- Cletus Strausbaugh.
Juergen made the refinance process seamless and even saved us money along the way. With his expertise, he was able to find us the lowest rates even though we had recently done a mortgage forbearance due to COVID. He was also able to negotiate waiving an appraisal, and we closed in 6 weeks flat (which during these times is super fast!) I would absolutely recommend Juergen, as he truly cares about each client and works with a sense of urgency to prioritize your needs. Thank you, Juergen! .- Athena Joseph.
I have completed maybe a maximum five reviews in my over 40 years life but felt compelled to leave this review. I have engaged in multiple real estate ventures throughout the last 20 years and have worked with numerous agents. I can honestly provide that the service provided by Juergen and his team has been unmatched. The decision is not even open for deliberation. His attentiveness, honesty, knowledge of the business, and ability to easily codify customer needs and market requirements into a successful package was just amazing. I will be doing business again with Juergen and highly recommend his services!- Vince Vanterpool.
Cannot say enough about the experience I had with Juergen! Incredibly detailed and attentive to my needs, Juergen immediately went to work! Not only was he available, but Juergen provided me updates almost daily with where we were at in the process. If something was needed Juergen was there! No chasing around with phone messages or trying to track him down, Juergen was on top of every detail from start to finish! I closed in three weeks with a rate that was over a full point lower than my previous loan. This amounted to a huge savings for me and put that money back in my pocket. Professional and genuine attention to details, this is your guy if you want the Best! Thank you Juergen!- James Griffin.
I have purchased 2 homes and done several refi’s. Juergen truly made this transaction simple. He worked hard to get me an amazing rate and did all the work to make this painless. He is very professional while being friendly. I highly recommend Juergen Schmid – Mortgage Consultant.- Andrew Siminoff.
We just completed a refi with Juergen and have nothing but positive things to say! This was by far our easiest refinance transaction. We appreciate Juergen working hard to find us the best rate and his thoroughness. He communicated clearly to us and made sure we understood what was happening. We have already recommended him to friends and family!- Lorna Judge.
Your Renovation Wish List Could Include...
Increase window size
Bring in more natural light
Finish a basement or attic
Create a mother-in-law apartment or guest space
Correct foundational issues
Protect your investment for the long-term
Add a detached garage when one does not exist
There’s room for everyone
Knock down walls
Open up the floor plan to create versatile, welcoming spaces
Flood-proof your property
Add a retaining wall to prevent expensive damage
Repair the pool
Tired of leaks and cracks? Fix the pool & start enjoying it
Expand or refresh the kitchen
Cooking is just more fun in an updated kitchen
Add square footage
Growing your family? Grow your home alongside it!
How Does a Renovation Loan Work?
Depending on the types of repairs you plan to do, you have two options when it comes to securing a FHA 203(k) Renovation Loan: Limited and Standard.
What Do First-Time Home Buyers Need to Know About Buying a Home?
Why should I buy a home now and not rent until I can save up a massive down payment?
Because there are plenty of options for lowering your down payment! For example, the FHA loan program, which includes loans insured by the Federal Housing Administration, is great for people with low credit scores and not a lot saved for a down payment. That isn’t to say that you shouldn’t save for a down payment—but remain open to all of the options available.
How will I afford my home?
Pre-approval for a first-time home buyer can be a major step in the process, and it’s easier than you think. A pre-approval is essentially a (conditional) promise from a lender that they can offer you the mortgage terms you need to make an offer on a house. This requires an application process that’s much simpler than you might imagine—and great for first-time home buyers who want to shop around and demonstrate to a seller that they’re serious about their offer.
Should I save for a down payment?
Absolutely. Just because you don’t necessarily have to make a 20% down payment on your first home doesn’t mean that you should eschew the process completely. Having a substantial down payment saved never hurts.
I have a low credit score. What kinds of loan programs are there for me?
If you go through the application process and make sure that your payment is in line with what you can fit within your budget (the typical recommendation is a mortgage that takes up no more than 25-33% of your household budget), then you’ll find it’s possible to afford your first home—and the process may be much simpler than you imagined
How do I get pre-approved?
In addition to the FHA loan program as mentioned in the previous answer, you should also look at your qualification for: the VA loan program, the USDA loan program, and even the Good Neighbor Next Door buyer aid program.
What should I do next?
Simple. Click any of our buttons above and find out if your first time home purchase can be as easy as we say it is here. Don’t worry about a low credit score, either—you’ll find that there are plenty of programs out there that can help.