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First Time Home Buyer Options

  • Looking for your first home? Consider these low- and no- down payment options.

     

    97% (3% Down) Conventional Loan

    • Loan amounts up to $647,200
    • Up to 3% seller contributions allowed
    • Gift funds allowed toward closing costs​

     

    96.5% (3.5% Down) FHA/FHA High Balance Loan

    • Loan amounts up to $647,200 / $970,8001
    • Up to 6% seller contributions allowed
    • Gift funds allowed toward closing costs

     

    95% (5% Down) Conventional High Balance Loan

    • Loan amounts up to $970,8001
    • Up to 3% seller contributions allowed
    • Gift funds allowed toward closing costs

     

    100% (No money down) VA Loan

    Veterans, active-duty service personnel, and reservists deserve to live the American dream that they help protect. Features of the VA loan program include:

    • Loan amounts up to $1,500,000
    • Up to 4% seller contributions allowed2
    • Gift funds allowed toward closing costs

     

    100% (No money down) USDA Guaranteed Rural Housing Program

    If you’ve been house hunting in an outlying area, a guaranteed rural housing loan is designed to create opportunities for those with limited savings or modest incomes.3

    • Loan amounts up to $647,200
    • Up to 6% seller contributions allowed
    • Gift funds allowed toward closing costs

     

    All products listed above are for the purchase of a primary residence only.  Low down payment options may not be the best option for all borrowers. Loans with low downpayment features may require monthly mortgage insurance which could increase the overall cost of the loan. Talk with a home mortgage consultant for additional details. Contact us today for a complimentary consultation.

    1. $970,800 maximum loan amount is available in high balance areas only. Contact your mortgage consultant for details.

    2. Excludes normal discount points and borrower’s closing costs.

    3. Property location and income restrictions apply, and homebuyer education may be required.

  • 1. Conventional Loan with 3% Down

    • Available for conforming and high balance loan amounts
    • Fixed rate mortgages available
    • Gift funds may be permitted up to 3% of the loan amount1
    • Available for 1-unit primary residences only
    • First-time home buyers only2

     

    2. Conventional Loan with 5% Down

    • Available for conforming and high balance loan amounts
    • Fixed & adjustable rate mortgages available
    • Gift funds may be permitted for primary residences and second homes up to 3% of the loan amount1
    • Available for primary residences, second homes, investment properties, townhomes, condos (Fannie & Freddie eligible), and manufactured housing
    • First-time home buyers only2

     

    1. Gift funds permitted for primary residences and second homes only. The donor may not be, or have any affiliation with, the builder, developer, real estate agent, or any other interested party. This includes any family member.

    2. A least one borrower must meet Fannie Mae's or Freddie Mac's first-time homebuyer requirements. Homebuyer education is required.

  • Refinancing with FHA Streamline may help qualified borrowers reduce their overall mortgage payment, decrease an existing interest rate and help build home equity faster.
    Refinance with confidence


    Features

    • Lender-paid closing costs – No out-of-pocket closing costs for borrowers
    • No appraisal required – using the original appraised value may help minimize declining home values
    • No maximum income ratios – changes in income may have less impact
    • Quicker financing process – reduced documentation helps facilitate a faster loan closing
    • Potential refund of existing FHA upfront MIP

     

    Please see program specific pages for details or speak with your local mortgage consultant.
    By refinancing an existing loan, your total finance charges may be higher over the life of the loan.

  • The USDA Guaranteed Rural Housing Loan Program’s mission is to assist low to moderate income, rural home buyers achieve their homeownership dreams.

    As an approved lender, we offer USDA loans to qualified borrowers and can help applicants purchase a home with affordable interest rates and loan terms.1

    Features:

    • Budget-friendly benefits — no minimum down payment or cash reserve requirements. Closing costs and fees may be financed as part of the loan amount up to 100% of the appraised value.2
    • Contributions allowed — Iinterested party contributions of up to 6% and gift and grant funds are permitted
    • Built-in resale advantage — loans are assumable, with Rural Development approval, giving qualified, future buyers an option to take over the exisiting interest rate.

     

    No or low down payment options may not be the best product for all borrowers. Please consult your mortgage consultant to discuss your financing options.

    1. Eligible only for single family, primary residences purchased within the eligible rural areas as defined by the USDA. Credit is subject to approval. Property location, asset and income restrictions apply, and home buyer education may be required.
    2. A guarantee fee is charged and collected at the time of closing and can be paid by the buyer or seller, or financed. Loan amounts may exceed the appraised value of the property (e.g. >100% LTV) to include the amount of a financed guarantee fee. This applies only to loans for which all or a portion of the guarantee fee is being financed into the loan.

  • 3% Down First Time Home Buyer Program

    We offer 3% down, conventional home financing1 for qualifying borrowers.

    According to consumer research, the ability to save enough money for a down payment and closing costs is often the main obstacle that stands between potential first time home buyers and homeownership.

    In support of first time home buyers who may lack the funds to make a larger down payment and cover closing costs - but otherwise qualify for a mortgage - we offer 3% down, conventional home financing.1

    Here are some key features:

    • 3% down payment (97% LTV)
    • 30 year fixed rate mortgage loan
    • 3% down payment and reserves (if required) may be supplied by gift funds
    • 1-unit primary residences eligible (e.g. single family homes, town homes, condos, planned unit developments (PUD))
    • Pre-purchase homeownership education required
    • Borrower on the loan must not have owned any residential property in the previous 3 years

     

    1. Low down payment financing options may not be the best option for all borrowers. Consult your mortgage consultant to review potential loan scenarios and financing options to determine the home loan that is right for you.

August Journal 2022

August Journal 2022

Thursday, August 18, 2022

Misconceptions Held by First-Time Buyers A recent survey discovered that some first-time buyers are unaware of all the mortgage options available to them. Are any of these common home buying myths affecting your plans? I need to put down 20%, right? Over 40% of would-be...

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The VA Home Loan...

The VA Home Loan Advantage

Monday, August 8, 2022

At Prosperity Home Mortgage, LLC (Prosperity), we proudly salute the commitment and sacrifice of servicemembers, veterans, and military families who have supported and defended our nation.  That is why on Veterans Day 2014, Prosperity began extending incentive offers—in addition...

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