Posted on: 23rd Aug, 2009 07:26 pm
My annual household gross income is $56000. I'm married and have children too. We want to have our own home but I won't be able to make much to pay a down payment for the new home. I need another 1-2 years to afford it easily. We can currently afford to pay around $1250 a month but that would include monthly payment and maintenance costs. I've heard of first time buyer assistance programs, home builders incentives etc. but are there criteria involved and how to get such assistance? Whom do I contact, the hud? Should I at all be able to buy a home in the current scenario.
Hi sunday,
Lenders' underwriting criteria often require the borrower not to spend more than 25% of the annual household gross income (HHGI) for the mortgage principal and interest payments. Thus, you can qualify for only a certain amount loan depending on your HHGI.
If you do not have too much to put down, you can go for HUD approved FHA loans which require you to pay a down payment of 3.5%. However, you need to have a minimum of 620 credit score in order to qualify for the loan.
Some state housing authorities offer down payment and closing cost assistance programs to low and middle income first time borrowers. Which state are you in? You may contact your local housing authority and check out what they have on offer for first time buyers.
There is a First time buyer tax credit of $8k available this year, if you make the purchase before December 1, 2009. You can qualify as a first time buyer if you have not owned a primary residence in the last 3 years.
Lenders' underwriting criteria often require the borrower not to spend more than 25% of the annual household gross income (HHGI) for the mortgage principal and interest payments. Thus, you can qualify for only a certain amount loan depending on your HHGI.
If you do not have too much to put down, you can go for HUD approved FHA loans which require you to pay a down payment of 3.5%. However, you need to have a minimum of 620 credit score in order to qualify for the loan.
Some state housing authorities offer down payment and closing cost assistance programs to low and middle income first time borrowers. Which state are you in? You may contact your local housing authority and check out what they have on offer for first time buyers.
There is a First time buyer tax credit of $8k available this year, if you make the purchase before December 1, 2009. You can qualify as a first time buyer if you have not owned a primary residence in the last 3 years.
thank you jenkin, for acknowledging that state housing authorities have programs available for first time homebuyers.
they exist in almost every state - a few have suspended their operations, but most are going strong.
Sunday - if you can tell us where you live, we can provide that information easily.
they exist in almost every state - a few have suspended their operations, but most are going strong.
Sunday - if you can tell us where you live, we can provide that information easily.
