If you have never owned a home before, you may find that there are advantages to availing of a first time home buyer loan. Just because you are buying your first home does not automatically mean you should use New York home loans as there are also certain disadvantages to them. These programs have quite strict restrictions and a number of strings attached that may prompt you to think twice. These loans may be absolutely perfect for some couples but the wrong choice for others.
What constitutes a first time home buyer loan?
There is no doubt that the purchase of a first home is a real red letter day for young couples. To reach this point they have had to dedicate themselves to taking time and money. At times, to help overcome the issue of money, they may turn to first time home buyer loans. Although these programs vary depending upon your location they pretty much all follow a similar program, they offer financial assistance to first time buyers; this assistance can come in a number of ways:
1. Low or no down payment
2. A break on the prevailing interest rate
3. Grants to help defray the closing costs and improvements to the property
4. Limits on transaction fees
5. A certain portion of the loan may be forgiven
The assistance mentioned may or may not apply to first time New York home loans, you will have to ask the lenders in the area.
Who can get a first time home loan?
This is not a trick question; of course it applies to first time buyers but it can also apply to people who have owned a home in the past but have not owned one in the last three years. Once again, check to see if this applies in the area where you live.
Just because you are applying for a first time loan doesn’t mean it is automatically approved. It is still necessary that you meet minimum income clauses; however, as these programs focus on low and middle class wage earners, if you earn too much you will not get one. This is also true if you have significant assets such as an active stock portfolio.
If you are a member of a union you can apply for New York home loans for no fee. All fees that are normally charged by other lenders are waived; contact Members Mortgage Corp. for more details.
