Just out of school and considering buying your first home? You'll be surprised how easy it can be to qualify for a loan. Too often, the newly minted workforce doesn't realize the confidence lenders have in their ability to be responsible homeowners.

Ok, so Mom and Dad told you that you require to buy a house. You've graduated from college and you're earning a decent income. Even though you don't feel like it most of the time, you are officially all grown up. But you ask yourself, "I'm only twenty-four years old, who would possibly loan me cash to buy a house?"

First time homebuyer programs are established with flexible guidelines to attract - you guessed it -first time homebuyers! you are in a great position to buy a home provided you have established some history of decent credit. Even if you don't have traditional lines of credit to show for yourself, you may have established non-traditional credit and not even realized it. Do you have utilities, a cell phone and cable bill in your name? Have you paid them on time for 12 months? Then you have established non-traditional credit. Granted, plenty of of you already have a credit card or gas card in your name. That's why Dad wanted your name on it, too. nice thinking on his part. At the time, you were excited to get the credit card "for emergencies." It didn't even occur to you that you were establishing a nice credit history.

Most lenders require to see at least a year under your belt earning income. The majority of new job workers are making at or under the median income limit for their area. there's those that beat the curve, but then, if you're making that much cash on your first job, you don't require a first time homebuyer program. You can probably take another route to your first home. Also, recent graduates can get credit for having a diploma. If you have a diploma and an employer who is willing to verify that you earn what you say and are likely to continue on with them, then you're nice to go -even without a year's employment history to show for yourself.

Some lending programs ask that a borrower have maintained an excellent rental history, preferably a three year history. But, you don't get penalized if you have been living at home. , if home is in the same city that your school is located. you are basically asked to provide explanation as to how you managed to live rent free. Sometimes, Mom and Dad have to provide a written statement. They're probably willing to do that to get you out of the house and off the payroll.

What about a down payment and closing costs? Most programs will allow a seller to chip in 3% of the sales price toward your closing costs. This allowance can cover most if not all of your closing costs. Your Realtor basically needs to be aware that you require this concession so she/he can negotiate it with your purchase contract. and how much do you have to come up with for a down payment? How about $0? all first time homebuyer programs are designed for empty pocket consumers with potential to earn more and maintain nice credit. Some programs don't require you to have any reserves in the bank. Since so plenty of first time homebuyers live on a budget, these programs allow for the reality of life. and you can be rewarded for being a conscientious consumer with lower than average interest rates being obtainable to you.

You may be ready to buy your first home and not even know it. A nice mortgage specialist will pre-qualify you, find out what you can afford or what your comfortable paying. Then, you have to find the right home. It's not as hard than you think!

Most of the people who read this column are not first time homebuyers. The fact of the matter is lots of of you that are first time homebuyers and reading this news story are relatively mature individuals who are fighting off your commitment fears of being tied to a mortgage. But there is a huge segment of the population that could buy their first home, yet it doesn't occur to them to do so. who are these people? Well, it's your 24 year old son or daughter, new to the work force, and is throwing away cash on rent somewhere. Encouraging your children to buy a home when they are young is a quantity of the soundest financial advice you can give them. Equity in a home is an easy way to grow one's portfolio with little investment. But the fact of the matter is it doesn't occur to most of us to encourage the younger generation to buy early in their lives. and trust me, it seldom occurs to our kids themselves to consider buying a home in the early twenties. they are more concerned with buying a new Halo 3 for their Xbox.

they encourage our kids to plan for their future, but they never include buying a first home sooner than average as a path to building that future. Let them know buying a home is not as difficult than they think.

When Junior starts his new job at the company and 401(K) is available, he's been informed by his folks, boss or peers to enroll and contribute at least a little something to it with every paycheck. Yet, they is seldom counseled quit renting that apartment for $750 a month and buy a $75,000 house. Where will they come up with the cash to do it? there's multiple options for first time buyers that permit for 100% financing. Get the seller to kick in closing costs (up to 6% of sales price with some products), and three can close on a loan and bring no cash to the table. If your home value appreciates 4% in the next year, that's a good return on a no cash investment.

Why do so lots of people miss the boat on this opportunity? It could be they plan to be in the area for only a short time because they will job hop to advance their career, thus viewing a mortgage as "too permanent." I counter to basically sell the house when you move. Or maybe they expect their income to double or triple over the next two years. I say buy a home now, then upgrade to a new home; sell or rent the old house. Investing in real estate is a proven, safe and solid return on investment. and with the right combination of credit history (or a history of paying utilities, cable and your cell phone on time) and no cash down, you or someone you care about can start investing in the future.

For some time, I've considered writing this series for first time buyers to let them know buying a home is not as difficult than they think. But, the more I thought about it, the more I realized the advice I would offer would most likely not reach my target audience. So parents, it's up to you to supply your kids with this last little bit of advice and help to set them free to further establish their independence in this world. Clip this news story out and tape it to their iPOD or the steering wheel of their automobile - someplace it will get noticed.

I think for most of us who've been through the experience, our first home buy was a daunting experience. there's so lots of choices and unknowns - it can be overwhelming. In this series, I will try to break it down the system into small logical steps and make it not as difficult understand the steps involved in financing your first home. Where do you start? that is perhaps the easiest part. Our newly established worker should first make a list of all his or her debt obligations such as student loans (unless deferred), automobile payments, credit card debt, etc. Hopefully at this age, this will be a small list. Then add what you think amount you could afford for a mortgage. Take that amount and divide it by your gross monthly income. If you come in at 43% or less, you're in business. If you have something in your savings or checking - great. If not, don't let it deter you. You have options.

Many people today are afraid of ARM loans and automatically only consider a fixed rate loan when applying for a mortgage. Depending on the market, this philosophy is sometimes the most economical route. But plenty of times it may be worth your while to consider an ARM loan.

When deciding upon a home mortgage, two of the most common options to consider other than a fixed rate loan
is an ARM loan. ARM is an acronym for adjustable rate mortgage. With this product, a starting rate is fixed for a certain period of time, and then when that time is up, the rate can adjust depending upon a pre-determined index and margin. This period can be from anywhere of 1 month or 10 years, and can reflect principal and interest or sometimes interest only payments. The adjust results in the mortgage payment either increasing or decreasing. there is also a cap on how much the interest rate can go up or down.

Within the past year or so, there wasn’t any real discernable advantage to considering an ARM over a fixed rate loan. The rates were comparable. But lately, the rates in general have crept up &, when comparing them, the ARM rates can have a healthy edge.

When I take a loan application, I ask my customer what their future designs are. Only going to be in town for a couple of years? Do you work for a company that relocates often? Do you plan to expand your relatives any time soon? Answering yes to any of these questions is a trigger for me to present an ARM loan as an option. The average homebuyer only stays in their home 7.5 years. I recently had a customer who knew she would be in town for only 3-4 years. The difference between a fixed rate and an ARM rate was .375%. The ARM rate was fixed for 5 years before any modification would occur. No brainer.

there's a myriad of mortgage products out there for the consumer to consider. Ask questions of your loan officer, and more importantly, expect your loan officer to ask questions of you. and if you can’t sleep at night because you know that two day that ARM loan can adjust, just remember two thing. You can always refinance your loan when that time comes. Now, get some sleep.

"In order to promote the production of more affordable new housing units for very low, low and moderate income individuals and families in the state, to promote the preservation and rehabilitation of existing housing units for such persons, and to bring greater stability to the residential construction industry and related industries so as to assure a steady flow of production of new housing units…"

Many times, people have heard of THDA and are confused, thinking that THDA is a certain loan type. In fact, it’s lending agency. All THDA mortgages must be insured by private mortgage insurance, FHA, VA or RECD And as these loans are intended for low to moderate income families or individuals, there is a income limit and acquisition cost limit. Also, you must be a first time homebuyer unless your home is in a targeted area.

Why is THDA so fantastic for a first time homebuyer? Well, it comes down to money. THDA offers a below market rate and will allow up to 100% financing. Have you been reading the papers lately? It’s not so easy to find 100% financing these days. Unless, that is, you’re a first time homebuyer. It also has programs that allow for down payment assistance via grants from certain approved agencies (if your loan type requires a down payment). If you have satisfactory credit and the home you wish to buy meets THDA’s standards, then you’re in business.

All THDA mortgages are 30 year fixed rate loans, so you needn’t worry about finding yourself with an ARM loan (adjustable rate mortgage) and a new payment you can’t afford in 3 years. And THDA allows lenders to only charge customers a standard 1% origination and .25% discount fee. It also closely monitors fees associated with the loan. THDA really looks out for the best interest of the first time homebuyer. If you are eligible for a THDA loan, you can feel pretty certain that an unscrupulous lender can’t take advantage of you because THDA won’t let them. For so many people, buying a home is pretty intimidating. THDA takes away the uncertainties a buyer faces with its guidelines and lending practices.

If you do apply for a THDA loan, be prepared to document your credit worthiness. THDA loans require slightly more documentation than your average loans because of the uniqueness of its product. In order to offer more, THDA asks for more – ensuring you qualify for its pretty awesome program. Sounds like a fair trade, if you ask me.

What are the disadvantages of a THDA loan? Not many. They do have a federal recapture tax if you sell your home within the first nine years of owning it. But it sounds scarier than it really is. I’ve heard that only about 1% of THDA customers actually pay this tax. That’s because a bunch of really great things have to happen to you in order for it to actually apply to you. And if those great things happen to you, paying the recapture tax won’t matter much to you anyway. I’ve been in the business for 16 years and have only heard of one person actually having to pay one. He graduated from medical school and his income when through the roof. His property was sold above market value than for the area because it was adjacent to some property that a huge retailer wanted to purchase. Again, good things have to happen to pay the recapture tax. So, you shouldn’t be afraid of it.

More people need to hear about and take advantage of the THDA loan programs. It’s such a great product and really helps the community and the housing industry. If you’re a first time homebuyer or think you’re in a targeted area, make sure you ask about THDA to see if you would qualify for a loan. You won’t regret it!

By: Kristin Abouelata - Home Loans