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A Guide To First Time Home Buyer Mortgage
If you are a first time home buyer, you might get cowed down by the zillion procedures that need to be done regarding purchasing a new property. Of course, financing your home might be the first of your concerns. Here is a guide to the various mortgages available to first time home buyers.
Among the top 10 mortgage lenders, Quicken Loans, the largest FHA lender in the nation, and Citi Mortgages that offers the full line of purchase mortgages, including FHA and VA loans, both have low down payment requirements. Even borrowers with low credit scores benefit from these two mortgage lenders. SunTrust and Flagstar Bank are the other two mortgage lenders that demand low down payment from first time home buyers. Others like JP Morgan Chase, Bank of America, SoFi Mortgage, Navy Federal, US Bancorp and Wells Fargo are part of the list that makes up the best home mortgage lenders.
Secondary mortgage refers to the loan taken on a property in addition to the first mortgage. Home equity loans, home equity lines of credit and reverse mortgage are types of second mortgages. Second mortgage lenders charge higher rates than current mortgage rates because the primary loan mortgage company gets paid first in the case of a loan default situation. Hence to cover that risk of nonpayment, the rates of interest on a secondary mortgage are higher. The top 10 home equity loan providers are LendingTree, TD Bank, Citizens Bank, Key Bank, US Bank, Citibank, Third Federal, Wells Fargo, JP Morgan Chase and Bank of America.
A jumbo mortgage loan is one of the many ways to purchase a very expensive luxury home. A low debt-to-income ratio and a high credit score is the perfect combination for procuring a jumbo mortgage loan.
A government-insured mortgage loan is FHA. Issued by the Federal Housing Administration, an FHA loan has advantages such as a low down payment requirement. Helping first time home buyers, FHA does not actually provide the loan but provides coverage to the money lender from loss in the event the borrower defaulting payment.
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