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Free Down Payment Assistance For First Time Home Buyers – The West Cook Center’s second FREE Saturday Educational Workshop will be held March 14 at Malcolm X College, Blvd. If you are looking to buy a house, this course is for you! Not just for first home buyers. Don’t miss this popular course that outlines the steps you should take when buying a home. Learn the dos and don’ts of your credit in our home buyer education workshop. Learn how to access $30,000 in down payment assistance! Earn a pre-purchase Housing and Urban Development (HUD) certificate issued after completing an individual consultation. You must be in class by 9:30 am to receive 6 hours of credit for the certificate. Unfortunately, there is no childcare.
This home buying course is sponsored by US Bank. Hear from our partners in the housing industry about how to get a mortgage, down payment assistance, home insurance and what to look for during a home inspection. Learn how to get a free credit report and what lenders look for in your credit report. Learn how to avoid predatory predators. Find real estate agents who are interested in helping you get the best value for your money when buying a home. We work with our lenders and the Illinois Housing Development Authority (IHDA) to qualify buyers for all of their mortgage products and down payment assistance. Other down payment plans available to our customers include the Federal Home Loan Bank and various employer assisted housing plans. You can learn all this and more at our FREE HUD Approved Homebuyer Education Workshops.
Free Down Payment Assistance For First Time Home Buyers
You must register to attend. You can register by emailing your name, address with zip code and phone number to info@westcookhomeownership.org. Call us at 773-887-5187 if you have any questions. I’ll cover everything you need to know about an FHA loan to see if it’s the right choice for you, or better yet, if it’s not the right choice for you. And there is another loan that will help you save more money.
First Time Homebuyer Workshop
Very quickly, we will go through some of the highlights of this plan. FHA is one of the easiest loans to qualify for, and it’s not just for first-time home buyers.
You don’t have to be a first-time home buyer, but many home buyers use FHA loans. And this is mainly because there is a lot of flexibility with the income you can have.
It allows you to go up to a higher purchase price if you have a debt-to-equity ratio, which we are going to, and it is also much more lenient for credit or for people with certain credit problems. So there are basically two different loan amounts.
If you have a credit score of 580 and above, you have a minimum payment of 3.5%. It’s not the percentage, it’s the amount. Down. Good. Now, if you have a credit score of 500 to 579, you need to put down 10%.
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Now, FHA is best for lower to moderate credit, so once you get into the 620 range, that’s the minimum required for a conventional loan. Now, FHA is best for lower to moderate credit, so once you get into the 620 range, that’s the minimum required for a conventional loan. When you start to get to that point, you want to start looking at traditional as an alternative.
Now, what people do wrong here is holding on to their FHA loan for too long. FHA to me is a loan that you use to secure a home if you can’t qualify for something like a conventional loan or another loan that might be cheaper for you monthly and long term.
So what you want to do is use an FHA loan to secure it. And then work on your credit or whatever else you need to work on to refinance into cheaper debt, cheaper mortgages, and this is what I call a bridging strategy when you do that.
Here are some quick pros and cons. Number one is that it is very easy. To qualify for an FHA loan, which is often why people think of it as a first-time loan, although you don’t have to, you can still get something like a conventional first-time loan again , has a very low interest rate. Often, FHA rates are lower than conventional loan rates because of the mortgage insurance they carry, which I’ll talk about.
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You also have the option of a low payment, again, down to a minimum of 3.5%. Um, you also have some rehab options. This is very common, what I’m going to talk about, where maybe you found a house and you need to do some work, and you can get money from the FHA, called 203k to go to work in rehab.
So there are many investment options, what many like to call a house, where you can look at buying a multi-family house and use the FHA for that. So it is not for investors. You must always live at home. But people can use it in order to help with a type of investment.
So some contrary here, is a monthly mortgage insurance. It’s expensive. There is also advance mortgage insurance and I will cover both. Their loan limits are a little low, so if you’re looking to buy, you know, the higher end of the range in your area, FHA, might not be the best for you. It has strict appraisal requirements compared to something like a conventional loan, and it is not always in great favor with sellers.
So FHA loans are actually better for many buyer’s markets where the buyers are in control compared to seller’s markets.
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So some big changes we’ve seen here. Number one over the last year is, the market has changed and the FHA has become more accepted as we go from a super hot seller’s market to, in many areas, a more neutral zone.
There are also new loan limits and the Covid restrictions that were on FHA loans have been relaxed for many lenders.
Now there was talk of progress here again, 580 and more. You can drop three and a half percent. So if we work with an example $ 425,000 house, that would be $ 14,875 as your deposit.
Now, if you have a credit score of 500 to 579, that’s a 10% discount. That would be $42,500 down. So you can see with FHA, it is possible to get this loan if you have a credit score below 580.
Free Home Buyers Seminar
However, it will cost you the payment. That’s simply because the FHA considers it more risky to have a lower credit score. So they want to see that you have a little more skin in the game. Now you can always put more than the minimum. This is only minimal progress. If you want, you can reduce it by 20% and 30% according to your choice
The FHA currently operates many down payment assistance programs. For example, my company, we are licensed in all 50 states.
We operate what is known as a Subsidy Authorization Scheme. And it’s a national concession, so it can be forgiven at closing. So there is no other loan or hidden loan like many payment assistance programs. So you can give up to 3.5% concession. It has a minimum credit score of 620, although the FHA lowered it to 500.
Using down payment assistance requires a higher credit score. And then you must have one of these options, whether you are a first-time home buyer, within the income limits on a delinquent census, or a current retired professional, military, serviceman or military.
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Now closing costs will be the same as any other type of loan with one big exception. And that’s the cost of FHA advance mortgage insurance which I’ll cover here on home insurance windows in a second. With closing costs on FHA loans, you will find the same closing costs as for a conventional loan, VA loan, USDA loan or Jumbo loan, all of which will be very similar at closing. and expenses.
You still have to pay for things like lenders fees, if they are paid, appraisal fees, title fees, foreclosure. Also home owners insurance and taxes, possibly HOA fees if you have them. If you are also in an HOA.
Now we talked about cashout assistance and you can get cashout assistance here. Again, usually, and so you get higher interest rates. So, most of the time, mathematically, the best option is to pay yourself,
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