Special Programs for First Time Home Buyers

If you meet certain guidelines, you can qualify for special financingwhich means lower rates or points and easier qualifying requirements. ResidentialFinance Network offers many of the most popular programs. Generally, borrowersmust have good credit to participate in these programs. If a borrower hasno credit history, an alternative credit history can be developed with theuse of rental and utility payment history.

Freddie Mac Gold Affordable 97 andFannie Mae Flexible 97.

We rank these programs as the best for first time home buyers who need a loan less than $240,000 for a single family home and have good credit. The best part of this program is that you only need a down payment of 3%, which can even be borrowed. This program is as close to no money down as any program gets. Also, there are no maximum income limits to participate in this program

Special Lender Community Reinvestment Act Programs

Many large banks have either made an effort to offer special programs to low-income borrowers seeking a mortgage or to borrowers purchasing a home in a targeted area. In addition to offering lower rates, points or fees, many of these programs have flexible underwriting requirements that make it easier to qualify.

These programs require either that a borrower's income be below the HUD median income for the area (some allow 115%) OR that the borrower be purchasing a home in a targeted census tract. If either criteria are met, borrowers can participate in these programs. These programs are currently offered by Citibank, Chase and BankAmerica.

Residential Finance Network can help you determine if you qualify for these programs. Simply compete a pre-approval application request that includes the area where you want to purchase a home. We will review census tract and income information to determine if you qualify.

VA Loans

At present, Residential Finance Network does not offer VA loans. VA loans allow veterans to purchase a home with no down payment. Rates are comparable to standard 30 year fixed rate programs. We recommend borrowers consult with the VA to review their benefits and determine if using a VA program is better than a standard program.

FHA Loans

At present, Residential Finance Network does not offer FHA loans. However, borrowers will probably find that the Freddie Mac Alt-97 and Fannie Mae Flexible 97 programs are extremely similar to standard FHA programs for single family home purchases and require much less time and paperwork to complete (FHA offers some benefits to multi-family buyers). Contact HUD for more information about these programs.