Are There Any More First Time Home Buyer Loans?

Unfortunately not, there is no specific Santa Rosa or Sonoma County first Time home buyer program available anymore. Down payment assistance options come in the form of pulling money out of retirement accounts such as stocks, bonds, IRA and 401(k) options. Another fantastic source for a down payment is gift funds. Many potential homebuyers are also unaware that a security deposit is also eligible money for use for closing costs or or a down payment.

These programs allow for a first-time home buyers to successfully purchase a home:

FHA Loan: allows for a buyer to purchase a home with as little as 3.5% down. Previous short sale, foreclosure or even a previous bankruptcy or even a combination of multiple previous credit challenges is still okay with this financing type. While the credit requirements for this type of financing are incredibly flexible, this is also one of the more pricey types of mortgages available on the market today with mortgage insurance being just over 1% of the loan amount on a monthly basis. Still, this one could be a great bridge loan into purchasing a home and subsequently refinancing in the future into a loan with no or little private monthly mortgage insurance.

Conventional Loan: Can be used to purchase a property with as little as 5% down. 5% down on this type of financing would require a monthly mortgage insurance payment however, approximately half of what the mortgage insurance would be compared to an FHA Mortgage. Alternatively, if a buyer can come up with a 10% down payment, they would be eligible to purchase a home with lender paid mortgage insurance where the mortgage lender actually pays the PMI associated with the mortgage providing a substantially lower monthly payment for an extra 5% skin in the game.

Are you thinking about buying a home in Sonoma County or Santa Rosa, California? If yes, start today by getting a complementary mortgage rate quote.



Here’s how to buy a house even if you think your income may not qualify

Here’s how to buy a house even if you think your income may not qualify

If you’re looking to get prequalified to buy a home, one of the main elements,…

Scott Sheldon's The Mortgage FIles Blog

FHA Mortgage Insurance Premiums reduced by 30 basis points-what this means for consumers

For folks looking to purchase or refinance a home with the FHA Loan, the Federal…

Can you get a mortgage with bad credit?

Can you get a mortgage with bad credit?

Many mortgage companies along with the internet would have you believe getting a mortgage with…

How to avoid getting a jumbo loan due to Coronavirus

Here are 2 mortgage process problems you will want to avoid

Securing mortgage loan financing is the cornerstone of financial prosperity in America. It’s one of…

View More from The Mortgage Files:

begin your mortgage journey with sonoma county mortgages

Let us make your mortgage experience easy. Trust our expertise to get you your best mortgage rate. Click below to start turning your home dreams into reality today!