• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

Why not all first time homebuyer programs are created equal

April 10, 2022 by Scott Sheldon

Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Email
Why not all first time homebuyer programs are created equal

If you are just starting in life and trying to get your footprint in the real estate climate; the information in this post is for you. Everyone must start somewhere and buy that first home. That first home is always the big one it is by far the hardest and most emotional. It can also be exciting, stressful, and euphoric all at the same time. A first-time homebuyer, these days unfortunately is not all that it is made up to be. Here is the reality of what you should be considering if you are a first-time homebuyer.

 

A first-time homebuyer in the eyes of a mortgage company is anyone who has not owned a primary home in the last three years. Here is the reality of what the first-time homebuyer means. It’s your first house it’s nothing more than that, unfortunately. The tax credits and the programs that were specifically for first-time homebuyers several years ago have all since mostly evaporated. There are programs out there; state grant programs, and down payment aid programs; that do provide the ability to come in with little or no money down. But let us take a step back for a second and look at the bigger picture. If you are a first-time homebuyer with good credit and have a respectable job. You also have little or no monthly debt, but you do not have any savings. Quite honestly you should not be buying a home. The reality of it is buying a home is something that requires careful meticulous consideration. It also requires a good foundational platform. Including favorable income, a respectable job, and a credit history.

If you bake cookies and you use too much sugar, they’re not going to come out right. Same thing with mortgages. You must have the right blend of cash, credit, and income to successfully buy a house in this 2022 real estate climate.

This means using the money for example from a 401K. Another thing you might have the ability to do is ask a friend or a family member for financial help. Getting a cosigner or getting a gift from someone could be a good platform. Especially if this is a trusted person in your life who wants to see you succeed. If those are not options stop looking for a house and work on saving money to better your income situation. Buying a house is not for everyone and it might mean that you can do it just not right now. You need to work on your credit. You need to pay off a debt, or loans, or lower your credit limits. Whatever the case is you want to work with a mortgage lender that can articulate where you are right now and help create a path for where you are going.

Trying to fit you in on a state-specific down payment program just because you can afford the mortgage payment does not necessarily mean that you should consider it. Let us say you can qualify for a state-funded down payment aid program, it is true you might be able to buy a house with little down. You also must have money for closing costs. Meaning you might have to get a seller credit for closing costs. The 2022 real estate market presently is not supportive of getting seller credits. A low supply of homes on the market on a national level also means you’re going up against other offers that are putting more money down or coming up with the money for closing costs. This is a reality of first-time homebuyers looking for down payment aid programs or a way around the traditional formula end up realizing. This is ok because everyone must start somewhere.

The first-time homebuyer program can get your foot in the door if you have a down payment. Money for closing costs is 3% down the conventional loan or 3.5% down the FHA loan. If you are a military veteran a 0% VA loan is an option. Provided that you have money in the bank. The number one thing is money in the bank that will help you buy a house. Start a 401K, an IRA, or a tyrant account. Not all but most employers will help contribute to such accounts. These are absolute accounts that you can borrow from without any interest or penalties to buy your first home. Wait, and in the future get a lower interest rate and put yourself in a much better financial position. You want to work with a lender who understands where you are right now and can help articulate a plan for you in the future.

 

Looking to purchase or refinance a house starts with a no-cost loan quote today!

Related Mortgage Advice from Scott Sheldon

  • Why Mortgage Rates Are Not All The Same

    Purchasing a home or refinancing a mortgage? Now is a fantastic time to consider taking…

  • fannie made change to home appraisal covid_19
    Why harp refinances are dwindling

    One of the financial programs aimed at homeowners wishing to refinance in the economic downturn…

  • FHA Mortgage Rates Vs. Conventional Mortgage Rates

    Searching for a home financing? If yes, consider the most common types of mortgage loans…

  • Comparing Rates Takes Knowledge
    Why the media is the worst gauge for the direction mortgage rates

    If you're in the market for a mortgage, the worst gauge the direction of mortgage…

Filed Under: Uncategorized Tagged With: 401k to buy home, BAD CREDIT MORTGAGE, best mortgage, buying a home, can I buy a house with bad credit, credit for sonoma county mortgage, FHA, fha first time buyer with 3.5% down, fha home loan, first time buyer, mortgage comparison shopping, qualifying for a mortgage, sonoma county home buying, sonoma county mortgage

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window