/ First Time Home Buyer
Buying your first home is often seen as one of the formidable signs in achieving the American Dream in this country. Unfortunately, a new home buyer can experience much frustration and can often not have the down payment or established credit history needed to qualify for a traditional conventional loan without some assistance. That is when working with an independent mortgage broker may help.
At Alliance Lending, we partner with lenders that offer many first time home buyers in San Jose easy and affordable solutions to buying their first home. We also participate in many programs, grants and down payment assistance avenues to make first time home buying attainable. These programs can help first time home buyers who may have credit scores or income levels that keep them from qualifying for traditional conventional mortgages.
More than any other type of loan product, FHA helps more first time home buyers become homeowners. With a minimum of a 580 credit score and steady employment, a first time buyer can qualify for an FHA-backed loan with only 3.5 percent as a downpayment. Credit scores of 500 to 570 require a 10 percent downpayment. This downpayment can be a gift from a family member or even a friend. FHA closing costs can also be rolled into the loan so you won’t have to pay them upfront. FHA loans are good for primary residences only.
An extension of the FHA loan program, the FHA 203k Rehab program enables a borrower to seek one-stop financing for a home requiring repairs. This program is good for first time home buyers in San Jose who may want to purchase a home to renovate. Requirements for FHA 203k loans are the same as FHA loans but require a credit score of 640.
Loans backed by the Veterans Administration are available for those borrowers who are active or retired veterans. These loans require no money down. Unlike FHA, they require no mortgage insurance which makes a VA loan one of the best options available for first time home buyers in San Jose who qualify.
Conventional loans made by lenders who qualify with Fannie Mae or Freddie Mac loan criteria offer opportunities for first time homebuyers. Fannie Mae and Freddie Mac have created mortgage loan programs specifically to assist first time buyers. Called a Conventional 97.
Cannot qualify for a conventional loan due to your credit score
Are self-employed, have numerous write-offs, have fluctuating income or have an inability to document income
Intend to fix and flip and require short-term funds to do so
The home must be a primary residence not exceeding the conventional loan limits set by the county. In Santa Clara County, this limit is $726,505.
If you are a first time home buyer in San Jose, you have options. Call the professionals at Alliance Lending at 408-226-4000 to discuss your needs and let us show you how you can purchase your first home.
Alliance Group & Associates Inc. is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.