| So you are thinking of buying your first home? | | | | your income over the past three years - yet what |
| Congratulations! You are taking a big step that will help | | | | qualifies as income is relaxed a bit. Social security, |
| you realize the dream of many as well as build | | | | alimony, rent paid by other family members and such |
| personal wealth. As a first time home buyer you | | | | qualify as income under the FHA program. In addition, |
| should know that there are several programs available | | | | short-term debt doesn't count against you (short-term |
| out there to help you get you into the house you | | | | is defined as being able to be paid off in less than 10 |
| deserve at mortgage terms that you can afford. | | | | months). You are allowed to use up to 29% of your |
| Before you begin your search for your first home be | | | | total income towards housing costs and up to 41% |
| sure you understand these programs and work with | | | | towards housing expenses and other long-term debt |
| your mortgage lender to take advantage of them! The | | | | obligations. Again, it is up to the homeowner to make |
| biggest resource for first time home buyers is the | | | | sure they can afford the home they want to buy. Just |
| Federal Housing Administration (FHA). They work by | | | | because the FHA relaxes the restrictions doesn't |
| providing private mortgage lenders with guarantees | | | | mean you should buy a home that you have to |
| (insurance) against the loan that you take out with | | | | struggle to afford each month. Through the FHA they |
| them. They help home ownership become a reality for | | | | will help you get started on owning the home of your |
| many who don't have perfect credit or have the | | | | dreams - but remember, it is a cooperative process. |
| finances available to otherwise afford the hefty | | | | You should still shop around at various mortgage |
| up-front payment sometimes required to buy a home. | | | | lenders and try and negotiate the best rates possible |
| It is important to realize that they are not there to help | | | | no matter if you are a first time home buyer or a |
| you buy a home you cannot afford; they are there to | | | | seasoned pro. There is a wealth of information |
| help you to buy a home you can afford by providing | | | | available about the FHA programs. Your mortgage |
| guarantees and assistance up front. It is up to you to | | | | lender should be able to provide you with extensive |
| make sure that you are not buying a home that you | | | | information and guide you through the process. You |
| cannot afford over the life of the mortgage note. | | | | can also read up on it yourself at In addition to the |
| Never get yourself into more debt than you can | | | | FHA, there may be state and local programs available |
| handle! The process of applying for an FHA loan is | | | | to you to help offset some of the costs of purchasing |
| pretty much the same as applying for a conventional | | | | your first home. Check with your lender to find out if |
| mortgage. You will need to provide verified proof of | | | | such programs exist. |