Q: What qualifies you to be a first-time homebuyer?
A: Many low money down and no money down programs require you to be a first time homebuyer. If you've never owned a home, you are considered a first-time homebuyer. But you are allowed to be a previous homeowner and still qualify as a first-time homebuyer. You can do so if you have not been an owner in a primary residence for at least three years leading up to your purchase.
Q: What is a Subordinate Lien?
A: A subordinate lien is any lien that has less of a payment priority than liens that have already been placed. It would be like having a first and second mortgage. Many low money down and no money down programs use subordinate liens to cover either down payment, closing costs, or BOTH! Each program will have different payment parameters so make sure you ask your loan officer about all the pertinent details.
Q: How much down payment is required?
A: Some programs offer as little as 3% down payment and some even less!
Q: Can a seller contribute toward closing costs and pre-paid items?
A: Yes! A Seller can contribute funds to help cover closing costs and pre-paid items.
Q: Should I buy a home or continue to rent?
A: In today's market it is almost always better to own than to rent in the long run. This is because of payment stabilization, appreciation, and potential tax benefits. But if you want to find out for yourself click here to use out Rent vs. Buy calculator.