Buying your first home is a very exciting step in your life. Capital City Home Loans is here to guide you through every step of the loan process.
Before finding your new home, I will help you get pre-approved for free. I can also match you with a trusted real estate agent through our partner networks. Our variety of loan options allow you to buy your first home with little to no money down, and I will work to ensure the loan payments meet your unique needs.
First time home buyers have a lot of questions and I am always available to provide personal attention. I can explain the application process, provide tips to use during your home search, and make sure that you find the perfect home for your needs and budget.
My free first time homebuyers eBook is available to download and read to help you learn more about the home buying process.
Popular Loan Programs for First-Time Home Buyers:
3% Down Conventional Mortgage
Fannie Mae and Freddie Mac offer first-time homebuyers a reduced minimum down-payment, and potentially lower mortgage insurance premiums if you qualify for Home Ready or Home One. Lock in a low payment and sleep tight knowing that your rate will not change.
With flexible credit and income guidelines, FHA loans are perfect for the buyer that wants to put less money down. Purchase your house with as little as 3.5% down!
An amazing deal for veterans and military members. Veterans and Active-Duty service members who qualify for this loan can purchase with no down payment and no PMI. Find out today if you qualify!
This no down-payment mortgage is for moderate income buyers who want to buy in a rural area as defined by the USDA. With flexible credit guidelines, this program has helped many buyers purchase their first home.
Down-Payment Assistance Loans
There is an ever-changing market for down-payment assistance loans than can help you purchase your first home with little to no money down. Georgia Dream, USDA and VA are the most common 100% financing mortgage. Capital City Home Loans has other options for you as well, so contact me today to discuss program availability.
How much should I use for a down payment?
There are costs and benefits to any option, including those with low down payments. You should carefully consider your options and discuss your plan with a professional.
Talk to me today to come up with a customized solution that best fits your needs and budget.
Cost of a Lower Down Payment
Low or no down payment programs have two primary costs that result in a higher monthly payment:
- Higher interest rates
- Higher mortgage insurance premiums.
Mortgage insurance can be removed once sufficient equity is produced on some loans. For example, if the property shows at least 20% equity in a few years, the mortgage insurance can be refinanced away. Conventional mortgages may allow the removal of PMI without refinancing in certain situations.
Benefits of Lower Down Payments
Though the disadvantages of low down payments seem serious, there are also advantages. Take time to weigh the two and assess which is the best for you.
The chief benefits of lower down payment include the following:
- Less money out of pocket at the time of purchase.
- Higher rate of return. Your property’s appreciation will be the same whether you put 3%, 5%, or 20% down. In fact, your rate of return actually decreases as you make a larger down payment, as discussed below.
- Opportunity cost. In some cases, the smart investor can make more money from available cash by placing it in other investments.
During the first few years of the mortgage loan, the bulk of your monthly payments go towards paying interest – which is usually tax-deductible. So you get quite a bit of your monthly payments back at the end of the year in the form of tax deductions.
Carefully consider the amount of money that you want to put down. I will qualify you for a certain level based on your income; however, that amount may be different from the level that you feel comfortable paying each month. You must decide what you can afford, and I will help you figure that out.
Talk to me today about the best situation for you.