There is NO SUCH THING AS A “FIRST TIME HOME BUYER LOAN”
Caught you off guard huh… Well it is the truth more or less. If you are looking around for the ever present “first time home buyer loan”, then stop wasting your time because you’ll be looking around for ever. There is no such thing.
After having spent over 13 years here the Charleston SC area in the mortgage business as owner and founder of a wholesale mortgage company I should know. If you hear anything about these types of mortgages it’s simply a marketing ploy by mortgage companies to intrigue prospective first time buyers into calling them. Then telling you they have a “deal” for first time home buyers. The actual fact is that it is usually much harder for people who have never owned before, to get a mortgage for their first home. Simply because most people who have never owned a home haven’t established much credit history, savings, or job history to have purchased. Thus their credit profile as it were isn’t established enough to make a bank or mortgage lender, underwriter feel confident they know the commitment it takes to being a home owner.
With the exception of private money not lent by a traditional Federally regulated institution like a bank, credit union, or federally chartered mortgage lending company there are really only a few loans that exist on the market today. Unlike the days of 2000-2006 when there were many different kinds of loans with even more types of terms. What is out there now since the tightening of credit is: Conventional (conforming) loans, government backed loans (FHA, VA, & USDA), and very occasionally state backed mortgage loans. At one point the state of S.C. did have sort of a first time home buyer mortgage loan for what they called “home town heros”. These were specially priced loans with looser requirements, and grant money assistance that was created to give a helping hand to those who served the public like: fire fighters, police officers, teachers, EMS, EMTs, & public safety officers etc. However, that loan is no longer being offered as of now, and there is no word if it will return.
Getting approved for a mortgage loan is sort of a simple thing. Have great credit, have a stable job and/or stable income for at least minimum of 2 years, and save up as much money as you can. PERIOD. That’s really all you need. For more tips on buying your first home click here.