If you put an interest in the first time home buyer program, kindly compare it with a conventional loan limits CA. It may require higher qualification, but it is worth it after all.
Thomas Valentino works as a Senior Mortgage Loan Originator in Scenic Oaks Funding. He has about 20 years experience in the financial industry.
Tom believes that using the first time home buyer program is a one way ticket to purchase your own Fresno homes for sale. However, if you have better score credits and higher amount of down payment taking a conventional loan mixed use property is a wiser choice.
Linda Peltz held a discussion with Thomas Valentino recently. They discussed about beginners guide to conventional loan in fresno homes for sale market. Find out more in the video below!
First time home buyer programs may sound appealing as it is available even when you have a lower qualification, but remember they will NOT cover your housing insurance. Waiting just for a bit will not make a huge loss, right?
Here present the 3 guide to conventional loan limits CA and its comparison with the first time home buyer program, there are:
1. Fixed Credit Score Number
The first time home buyer program may require as low as 580. However, in applying for a conventional loan limits CA, you must have a credit score of at least 620 to qualify.
You may be a little bit surprised by the difference, but it is the requirement. The numbers are reflecting nothing. It is only formed to prove your ability of affording the monthly obligation. Higher scores indicate that you are financially stable and ready to cover the responsibilities.
The qualification you need to consider in order to increase your credit score:
- Type of loan,
- Field of work,
- Marital status,
- Financial status,
- Years of service,
- Educational status,
- Correlation with the bank,
- The number of dependents, etc.
2. Debt-to-income (DTI) Ratio
It is better to clean your financial record before considering purchasing a house with conventional loan mixed use property. You don’t want to spend all of your spare to pay debt, right?
DTI Ratio is formed to measure your monthly obligation against your income. Lenders want to see the number around 36%. Just remember that the lower, the better chance of approval. Otherwise, you always have an opportunity to wait while cleaning your financial record.
Don’t get too hard on yourself. You need a break and bring a little reward for yourself during the gap. Never make a hurry decision in using a conventional loan limits CA, you can always wait and see which program suits you well.
3. Conventional Loan Limits CA Down Payment
You can expect the down payment requirement for about 5-20% from your mortgage value. Even when the first time home buyer program requires only about 3.5% down payment, you get like zero insurance.
It means if something happens to your house, no one will help you cover the loss. Then, to take this program you are required to maintain your own housing insurance. For your information, insurance is not cheap for the god shake.
However, if you make a move in conventional loan limits CA with about 20% down payment, they will absolutely cover your Fresno homes for sale insurance. Doesn’t it sound appealing?
What do you think?
You can always give us a call if you need any help in considering which program is best for you.
Thomas Valentino – Scenic Oaks Funding
Linda Peltz – eXp Realty