Because the allure of living with mom and dad forever or conversely renting into oblivion might not appeal to you all that much, when you hear a term like first time home buyer loans with zero down, you may be interested to find out just what that really is all about.
These NO MONEY DOWN Loans are made by mortgage lenders and guaranteed by USDA Rural Development to low and moderate income applicants to buy or build homes (30 year fixed interest rate) in rural areas of Maine. You can view the income requirements here.
The biggest challenge for most first-time home buyers is saving up enough money for a down payment. If you’re tired of living the life of a renter or living with friends or family but you can’t scrape together the sizable amount for closing costs, down payments, and other new homeowner costs, it may be worth it to find out about the first time home buyer loans with zero down offered by lenders like Reliant Mortgage Company. Settling down and settling in to a new home can make all the difference for young families starting out.
If you want to learn more about whether or not your dream home can be purchased as a first time home buyer loans with zero down, reach out to your trusted Maine Mortgage Banker and see what they have to say.
Oftentimes borrowers don’t have any credit card debt or open lines of credit and this can hurt their scores. For these types of clients it’s recommended they open a secured credit card with a min balance of $300-$500. Problem is where can they get one of these? A simple and easy place for borrowers that need help badly is at capital one.
Here is another link with a list of cards for people with bad-fair credit if the capital one doesn’t work- just make sure it says they report every month to all 3 bureaus.
To apply for a First Time Home loan contact me today!
Decoding Your Credit Report
Gain a better understanding of the factors that determine your eligibility for a loan.
The importance of financial responsibility is oftentimes overlooked in a materialistic nation comprised of excessive credit card offers, stretched lines of credit and the weakening dollar. In order to boost financial responsibility and provide more accurate information to credit bureaus, the company that calculates FICO scores has introduced a revamped credit scoring system. Many consumers will benefit, but others may face higher interest rates which may affect their monthly mortgage payments. Become one step closer to financial confidence by gaining a true understanding of the factors that influence your credit score.
Determining Your Credit Score
The restructured FICO credit scoring system, created by the Fair Isaac Corporation, is reported to go a bit easier on consumers who make an occasional mistake, yet really crack down on those who have multiple late payments and delinquencies. The weight put on certain factors, like late payments, have changed, while the benefit of authorized-user status has been dropped from the scoring system altogether. These changes may strengthen or slump your score by 20 or more points. Get to know the other factors that impact your credit score by reviewing the details below.
Length of Credit History
The longer your credit history, the better. Lenders like to see that you can manage your credit accounts responsibly over time. Now that credit scoring model ignores authorized-user accounts, it is important for those “piggybacking” to establish their own credit on a new and separate account. The omission of authorized-user accounts from future FICO credit reports will enable credit bureaus to protect lenders from those trying to misrepresent their credit risk.
Payment history is one of the most influential factors in determining your credit score. As mentioned earlier, future FICO credit reports will forgive a few late payments, but if your account shows multiple late mortgage payments and delinquencies you may see your FICO score drop.
Another significant factor that is reviewed by the credit bureau is the amount owed on your credit accounts. Having a mortgage and several credit cards will not classify you as a high risk borrower, but owing a lot of money on several accounts will. Make an effort to keep all credit balances low so credit bureaus and lenders do not assume you’ve overextended your financial capacity.
Opening several credit accounts over a short period of time may present you as a risk to lenders. This is especially so for those who do not have a long, established credit history. Try to keep new credit accounts to a minimum.
Credit in Use
Be aware of the types of credit accounts you use. This includes credit cards, financial accounts, retail credit accounts, installment loans and mortgage loans. The FICO scoring program analyzes all active credit profiles when determining your financial responsibility.
Remember, higher credit scores are the most desirable to lenders; but if yours takes a dip, no need to fret, you may still qualify for certain loans and mortgage products. Review your finances and work with Seth Jacobs so that you may better understand the role your credit score plays in your pursuit of an affordable mortgage product.
Keeping You Informed
Call 207-831-1903 today, to learn more about the best loan options for your specific financial situation. Together we can obtain your ownership and financing goals.