Purchasing a home for the first time is a major endeavor, and can oftentimes be overwhelming. Foundation Mortgage, in Knoxville, Tennessee, works closely with first time home buyers to guide them through the home buying process. If you are looking into buying a home in Knoxville, Maryville, Lenoir City, or Oak Ridge, Tennessee, contact Foundation Mortgage for assistance. After gaining a better understanding of your home buying goals and financial circumstance, we can help you find suitable home financing options that meet your needs.
Getting Help With a First-Time Mortgage
One of the most daunting aspects of purchasing a home is saving enough money for a down payment. When you begin the process of searching for, subsidizing, and buying a home, it is necessary to evaluate your current financial position and goals. When buying a home for the first time, saving money and improving your credit score should be a high priority. Fortunately, there are also several beneficial programs that are available to first time home buyers that can help you obtain a loan. Our mortgage specialists can help you determine a financing option that is appropriate for your situation, and discuss the various aspects of down payment, term of mortgage, interest rates, etc. Foundation Mortgage will be able to help you choose the best home financing option and determine your eligibility for each program.
First Time Home Buyer Programs
There are two principal types of mortgages, conventional and non-conventional. A conventional loan is a loan that is made available by a private lender, and is not directly secured by a government entity. Non-conventional loans, on the other hand, are government-secured loans that have moderate credit requirements and low down payments, and are a popular option for first time home buyers. Two significant non-conventional loans that assist first time home buyers are FHA loans and VA loans.
FHA loans are non-conventional loans backed by a division of the government called the Federal Housing Administration. This type of mortgage helps first time buyers achieve their goal of purchasing a home by permitting purchasers with a lower credit score to buy a home with a down payment as low as 3.5%. Due to their accessible loan qualifying requirements and minimal down payment, an FHA loan is an excellent option for a first time home buyer.
If you or your spouse have served in the military and meet the necessary requirements, you could qualify for a VA loan. A VA loan is a non-conventional loan that is backed by the U.S. Department of Veteran’s Affairs. A VA loan is an excellent option for first time home buyers because it doesn’t require a down payment, and has very low interest rates.
Explore Your Home-Buying Options
Finding your ideal home and securing a mortgage can be a challenging undertaking for a first-time home buyer. Foundation Mortgage is here to support you through the process and help you achieve your goal of obtaining your dream home. Contact us today for a consultation.