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Alta Loma, CA, United States, 2006/08/06 - 100% home mortgage loan programs available for first time home buyers, even with stated income..
Your decision to be a first time home buyer is both a sound financial decision and a commendable achievement. But before you start here is some home buying advice that helps put you in your dream home.
First Time Home Buyers should not feel overwhelmed at the process of purchasing their first home. A professional, patient lender who specializes in loans for First Time Home Buyers as well as taking the time to educate you in the loan process is advised.
When you first meet with the lender, bring all your “dumb” questions. Again, a lender who deals with First Time Home Buyers will be more equipped to answer all your questions and ease your fears. An experienced loan consultant will guide you through the loan process and make your dream of owning your home a reality.
Many lenders have 100% loans available to First Time Home Buyers who do not have enough money for a down payment. Our research has even found a 100% loan which only requires a “stated income”.
A stated income is different from a “verified” income where the lender will require current pay stubs to verify your income. With a stated income loan, the lender will accept what the borrower “states” as his or her income. The stated income must be within reason. You can’t say that you are a fast food cashier who makes $60,000 per year.
Our research also uncovered a First Time Home Buyer, 100%, stated income loan which requires no reserves. A reserve usually refers to monthly payments. If a lender requires 2 months reserves, they are looking for 2 months P.I.T.I. (principal, interest, taxes & insurance) in a liquid account
Your FICO (credit) score is very important for First Time Home Buyers. Our research discovered that the above described loan qualified with a FICO score as low as 640! The higher the FICO score the more programs available for First Time Home Buyers. We found some good loan programs with FICO scores as low as 620, but with the lower FICO score, you would lose some perks like no reserves or some stated programs, etc.