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First-Time Homebuyers On the Sidelines?

What is the #1 most important advice I can provide for first-time homebuyers? 

A positive attitude and action plan are most important. It is too often that first-time homebuyers will become discouraged by the rising sales prices and talk themselves out of a home purchase. Some may cringe at the thought of a daunting and agonizing purchasing experience or disqualify themselves by not having the funds for a down payment. They give up before they ever get started. 

Why settle for renting an apartment at the same price you could be spending as an owner? It is all up to you. If there is a will, there is a way. The process may take a two-year plan, but it begins when you commit. 

Sitting on the sidelines sucks!

Housing prices are up, but interest rates are the lowest in history. Housing affordability factors your monthly payment, figured with a debt-to-income ratio. The current market's low-interest rates are an attractive incentive
. 

Did you know that there are areas within your state's counties that are zoned low median income having "DAPS" down payment assistance programs available for first-time buyers? The DAP programs have forgivable loans provided as a silent second trust deed that do not require payments. 

Conventional loans by Fannie Mae and Freddie Mac are provided at 97% "LTV" Loan-to-value, requiring a 3% down payment. FHA government loans have a maximum LTV of 96.5% LTV requiring a 3.5% down payment. Loan amounts over an 80% LTV with FNMA and FHLMC mandate "PMI" private Mortgage Insurance, and FHA mandate "MIP" mortgage insurance premium. These are the best loans for first-time homebuyers without a 20% down-payment. 

If you have served in the armed forces and have a certificate of release or discharge from active duty, generally referred to as a "DD-214," VA provides 100% LTV loans. 

What is preventing you from homeownership? 

“Fear is an insidious and deadly thing. It can warp judgment, freeze reflexes, breed mistakes. Worse, it's contagious.”

-- James Stewart

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