A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan and interest from your federal income taxes and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you’ll enjoy having a home that’s all yours.
2 - What is the First Time Home Buyer program?
The First Time Home Buyer (FTHB) program provides affordable housing opportunities to Low Incomeand Moderate Income First-Time Home Buyers. This is accomplished by offering low, fixed interest rate mortgage products, along with Down Payment Assistance.
3 - Who qualifies as a First Time Home Buyer?
If you have never owned a home or if you have not been on title of a home in the last 3 years, you qualify. All buyer’s must also meet the Lender’s specific credit and income guidelines.
4 - Can I purchase a home even if I have had bad credit?
The answer to this is simple, yes. For buyer’s that don’t meet the credit requirements, we have credit repair programs available.
5 - How much money will I have to come up with to buy a home?
That depends on a number of factors, including the cost of the house and the type of mortgage you get. Most of the programs require that the buyer comes in with 1%-3% of the purchase price. But, because we are CALHFAcertified we have access to Down Payment Assistance programs. The amount that you qualify for varies but in some instances you may be able to get most if not all of your down payment covered. We also have lenders that allow the borrower’s to receiveGift Fundsfor your down payment. This money can come from a friend or family member. When you make an offer on a home, you will be required to put an earnest money deposit into an escrow account. Typically the amount is 1% of the purchase price but sometimes it can be less. The lender generally likes to see this money coming from your own funds. This shows that you have a vested interest in the property and lets the seller know that you are serious about purchasing. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your money is not accepted, your money will be returned to you.