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Paths to Becoming a First-time Homebuyer


Owning a home has traditionally been part of the “American Dream”, but in today’s financial climate some Americans doubt they can afford the dream. The good news is that there are many programs available today to assist first-time homebuyers in obtaining a mortgage. Here are more details about the programs and options available.

What are my Options?

When looking at your mortgage options, often the first place to focus is the down payment requirement. Different loan programs have different requirements, with some appealing more to first-time homebuyers. Programs like an FHA loan, backed by the Federal Housing Administration, requires just 3.5% down. To qualify, you must have a minimum credit score and there are some upfront costs along with monthly premiums as well. Even with the additional costs, it may be the right choice for you especially since the FHA loan allows a gift to the homebuyer for the amount of the down payment. There is also a Conventional loan program offered with as little as 3% down for first-time homebuyers. This program may require a higher credit score and have income limits, however, if you qualify it is a great option.

Another path to homeownership runs through some state or local assistance programs. While these programs typically do not offer the actual financing, they can often provide down payment assistance or help with closing costs. For example, with the Minnesota Housing Finance Agency you can purchase a home with as little as $1,000 down. You can inquire about available programs through your local or state housing agency, however, Cambria Mortgage and your Mortgage Consultant are experienced with these loans and can help you learn what programs and assistance are available for you with one simple phone call.

Who is Eligible?

While the specific rules vary by program and state, some basic guidelines revolve around your credit score, income, employment and price of the home. When looking at your credit score, it is common to need a certain score to qualify for some first-time homebuyer assistance programs, but those scores can vary so it is best to consult with your Mortgage Consultant for details. Income limits may also apply as many programs are designed to help low to moderate-income households. Eligibility is often dictated by the local median income and can be more for households with multiple occupants.

Employment can offer its own set of benefits with programs specific to teachers or public safety workers. The Good Neighbor Next Door program is offered by HUD and is open to law enforcement, primary school teachers, firefighters and emergency medical technicians. The program can offer discounts on the price of homes in the program as long as the buyer agrees to stay in the home for at least three years. There are also programs offered by Fannie Mae and Freddie Mac such as the Home Ready and Home Possible programs. At Cambria Mortgage we are very familiar with these programs and can discuss all the particulars with you during a free consultation.

How do I Find Programs in my Area?

While you can start with an internet search, the amount of programs can be overwhelming. Working with Cambria Mortgage you can speak with a dedicated Mortgage Consultant that will take the time to get to know what your goals are and help you find the right program for your needs. With our extensive experience with all different programs and loan options, we can walk with you through every step of the home buying process and help you achieve your dreams.

Call Cambria Mortgage

To get started, call Cambria® Mortgage™ at 952-942-0110 today or visit CambriaMortgage.comOur team of experts will provide personal, hometown service with sound advice and impeccable attention to detail at every step of the process.