A simplified guide for painless purchasing of your Mobile Eastern Shore home, Part 3.Continue reading
Loan Options For Mobile Eastern Shore First-Time Home Buyers
There is so much negative press about the lending industry these days, many Mobile Eastern Shore first time home buyers are scared to death to even consider buying a home. They hear stories that someone’s mortgage payment went from $1,000 to $1,800 almost overnight. They are afraid of the fine print and don’t know who they can trust.
A study conducted by the University of North Carolina School of Social Work determined that loans with low monthly payments result in borrowers who stay current. They also participate in their communities and vote.
The problem is subprime loans, says Roberto G. Ouercia, director of the Center for Community Self-Help, a nonprofit that partners with Fannie Mae and the Ford Foundation to lend mortgage money to low-income borrowers. The study found that borrowers with subprime loans are four times more likely to fall behind.
Subprime loans are loans to borrowers with questionable credit, usually 680 credit score or lower, and at higher interest rates.
Mobile Eastern Shore first time home buyers have other, less scary, mortgage options:
The Alabama First Step Mortgage Program
This tax exempt Mortgage Revenue Bond program offers lower than market mortgage interest rates and low fees for fixed interest rate 30 year VA, FHA or Rural Development mortgages. This program is designed for first time home buyers and low income home buyers. AHFA will provide a percentage of the home purchase price in down payment and closing cost assistance depending on the needs of the home buyer. This is financed over a 20 year term. To be eligible for this money you must use Rural Development or an FHA mortgage loan program.
The Alabama Step Up Program
The Step Up program is available throughout the state of Alabama. It is available year round and is available on a first come first serve basis. AHFA will provide no money down financing to qualified buyers that are using FHA or Rural Development loans. In conjunction with the down payment money, AHFA is offering a 30 year fixed rate mortgage with an interest rate that is slightly higher than the market rate on mortgage loans.
If you are a Mobile Eastern Shore first time home buyer and need more information on sound, reliable financing options, visit JudySells.com. You can also give me a call for more personal assistance.