If you are a first-time homebuyer or have a lower income, you may wonder what programs are available to help you achieve homeownership. Fortunately, agencies like Freddie Mac and Fannie Mae have developed programs specifically for this purpose.
For many years, first-time homebuyers and other borrowers have turned to Federal Housing Administration (FHA) loans to finance their home purchases. There are many reasons why these government-backed loans are so popular. It's often easier to qualify for an FHA loan than a conventional loan, and the down payment requirements are typically significantly lower.
Don’t worry if you’ve never heard of a debt-to-income ratio before. Most people don’t learn about DTI until they’re preparing to get a loan for something like a car or home.
It’s important to be aware of lender debt-to-income requirements when applying for an FHA loan to increase the chance of loan approval. In addition, it is highly recommended to calculate your DTI ratio to see where you stand.
Prequalification and preapproval are sometimes used interchangeably, but there is a slight difference between the two during the mortgage process.
Fannie Mae's HomeReady mortgage is designed to help people with low-to-moderate income and good credit buy a home. With low financing and mortgage insurance costs, a HomeReady loan can be a great alternative to conventional loans.
Buying a new home is exciting, but applying for a mortgage can feel daunting. This is especially true for new buyers who are experiencing the home loan process for the first time.
Finding the right property is only half the battle when you're buying a home. Unless you can pay cash for your home purchase, you also have to choose the right home loan product.
Knowing the pros and cons of the VA loan can help you make the right decision in which loan option is best for you.
