First Time Home Buyers

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First time homebuyers often experience the most difficulty amounting a significant down payment and everyone should have the opportunity to buy a home. For this reason the Federal government has developed two loan programs to assist homebuyers that have a little or no down payment. These programs are called the Federal Housing Administration (FHA) and the Veteran's Administration (VA). These programs are not solely intended for first time home buyers; your home loan advisor will be able to determine if you qualify and if so which program is acceptable for your needs. FHA and VA loans can be especially advantageous when combined with a HFA or MCC first time homebuyer program.

First time home buyer programs are designed to help borrowers who may not have enough money to pay the full cost of the down payment or the closing costs on a mortgage. These programs make obtaining a mortgage more cost effective. There are even programs specifically for residents of each state. First time home buyer programs are available to those who have not owned a home for the past three years.

Community homebuyer programs reduce the down payment the borrower must pay to 3%, which must be the borrower's own funds. The closing costs can be gift funds, a grant, or seller assistance up to 3% of sale price. This type of home loan requires the home buyer to take a class on home ownership in their state. Upon completion of the class, the homebuyer will receive a certificate that reduces the cash requirement and expands the qualification ratios. Community homebuyer programs have been making it possible for many people to have the opportunity to buy a home.

Escrow is a deposit of funds, a deed or other instrument by one party for the delivery to another party upon completion of an event. In simpler terms, escrow is where the transaction changes hands and prevents the seller from not receiving the money from the sale and prevents the buyer from not receiving the home that was purchased. Escrow is important to both buyers and sellers during the mortgage process.

A Mortgage Credit Certificate or MCC is a certificate awarded by your local government agency authorizing the home loan borrower to take certain federal income tax credits. The credits awarded help to free up funds and make the monthly home loan payments more affordable for the homeowner. First time home buyers are typically the candidates eligible for an MCC but in special cases that you may discuss with your home loan advisor this requirement may be waived. Income and purchase price requirements also vary state to state and should be covered in conversations with your home loan representative.

At SOUTHERN OAKS MORTGAGE our VALENCIA mortgage brokers offer a wide variety of first time buyer programs to VALENCIA first time buyers. First time buyer programs in VALENCIA can make securing a VALENCIA home loan easier and more affordable. Contact your VALENCIA mortgage lenders at SOUTHERN OAKS MORTGAGE to begin your first time buyer loan.

Here at Southern Oaks Mortgage, Inc., we cover the entire State of California, including some of the areas where we have specifically done loans in:  Valencia, Newhall, Saugus, Canyon Country, Castaic, Val Verde, Santa Clarita, Stevenson Ranch, Acton, Aqua Dulce, Lancaster, Palmdale, Los Angeles, Griffith Park, San Fernando Valley, Northridge, Chatsworth, Granada Hills, Encino, Tarzana, Woodland Hills, North Hills, West Hills, Canoga Park, Winnetka, Van Nuys, North Hollywood, Studio City, Beverly Hills, Pacific Palisades, Toluca Lake, Panorama City, San Jose, San Francisco, Fresno, Sacramento, San Diego, Long Beach, Oakland, Santa Ana, Anaheim, Westlake Village, Thousand Oaks, Simi Valley, Long Canyon, Moorpark, Conejo Valley, Agoura Hills, Calabasas, Bakersfield, Riverside, Stockton, Chula Vista, Irvine, Glendale, San Bernardino, Burbank, Huntington Beach, Oxnard, Oceanside, Garden Grove, Mission Viejo, Ontario, Pomona, Santa Rosa, Salinas, Pasadena, Corona, Torrance, Escondido, Orange, Fullerton, El Monte, Hollywood, West Hollywood, Palos Verde, Palos Verde Pennisula, Inglewood, Santa Clara, Costa Mesa, Downey, West Covina, Victorville, Norwalk, Carlsbad, Laguna Niguel, Laguna Hills, Newport Beach, Newport Dunes, Temecula, Murrieta, Compton, Westminster, Whittier, Santa Barbara, Santa Monica, Hawthorne, Alhambra, Buena Park, Lakewood, Indio, Vernon, Merced, Napa.