FIRST TIME HOME BUYER HIGHLANDS RANCH
Are you a first time home buyer in Highlands Ranch? Do you know what it takes to own a home in Highlands Ranch? Unless you have cash to buy a house, you probably need financing, that is, a mortgage.
At Synergy, we provide informed advice and mortgage lending services to home buyers and future home buyers. Whatever mortgage you need, we are here to help you grow into a new home.
How Much Do First Time Home Buyers Have To Put Down in Highlands Ranch?
First-time home buyers In Highlands Ranch have an advantage in accessing many low-down-payment mortgages. In most cases, conventional loans let home buyers buy a house with a 3% down and a credit score of 620. On the other hand, FHA mortgage loans Highlands Ranch allow first time home buyers to purchase a home with a 3.5% down payment and a credit score of 580.
Not to mention, there are mortgages for first time home buyers that have 0% down payments. They include USDA and VA home loans Highlands Ranch. But the USDA and VA loans have specific requirements that homeowners must meet, so not everyone can qualify for them. For instance, to get a Va loan, you must be an eligible U.S Armed Forces veteran or a service member in the country. For the USDA loans, you need to buy a home at least in a qualified rural area with a total population of fewer than 2,000 people. You may also need to meet local income limits.
The amount of cash you wish to put down as a first time home buyer is generally up to you. For instance, you may want to go for the conventional loan with 3% down, but you must pay mortgage insurance. Mortgagee insurance may not benefit you directly compared to homeowners insurance. But the good thing is that it will compensate your mortgage lender if you end up defaulting on the loan. You could opt to make a 20 percent down payment to avoid such mortgage insurance, which would lower your loan amount as well as s monthly payment.
The bigger your down payments, the smaller the loan amount, which means that your monthly payments will be smaller. This, in turn, helps you avoid private mortgage insurance.
Down Payment Assistance And How I Can Get One
For first time home buyers here in Highlands Ranch, you will need to cover the whole down payment yourself. You can as well apply for grants or low-interest loans, which are also known as down payment assistance. The grants and down payment assistance help with upfront contributions. In some cases, the money loaned out might not need to be repaid.
There are so many first time home buyer programs, and many of these programs are run by local governments or State governments. There are over 2,500 first time home buyer programs across the United States. Most qualified first time home buyers receive amounts from as low as $2000 to more than 39,000 towards down payments. You can also find first time home buyer programs around Highlands Ranch.
Is It Possible To Cover Down Payments With Gift Funds?
Absolutely yes! Most first time home buyer programs in Highlands Ranch allow you to use gift funds to cover your down payments. For instance, to buy a home worth $ 300,000 with a 3.5% FHA down payment loan, your entire, let us say $ 8000 gift from a loved one, could be a down payment.
Gift funds may come from parents, friends, spouses, employers, or from anyone generous enough to help you with home loans mortgage. For you to use your gift funds, they need to be correctly documented by the issuer and the home buyer.
Do I Need A Cash Down Payment To Refinance My Home?
You necessarily do not need your cash payment to refinance your home here in Highlands Ranch, Colorado. But you require enough home equity to meet all the requirements of the loan program or mortgage lender. For instance, if you owed $290 000 on a home worth $300,000, you would have a 5% or $10,000 equity. This may not be quite enough for most refinance loans. Most loans, especially FHA and conventional loans, require at least 20% of the home value in equity before refinancing.
Wrap Up
First time home buyers have a variety of options when it comes to mortgages and making down payments. Let us help you find a low-down-payment that best works for you and one that will not damage your credit score. At Synergy One Lending, we help you minimize all your costs by advising you on the loan options that favor your financial situation. We assist you by doing deep research on what best works for you and help you get that home mortgage of your dreams.
For more information, please reach out to us, and we will help you in any way we can.
