First Time Home Buyer Financing
First Time Home Buyer Guide for Massachusetts and Connecticut
As a First Time Home Buyer in Massachusetts or Connecticut you are eligible for any number of valuable and money-saving programs designed to help make the ownership of your first home a comfortable and rewarding experience. No matter what kind of financial budget you have, there is a homeowner's program that will help you make the most of the money you have to spend.
Determining what you can afford, where you want to live, and what you want in a home.
The first step in the home buying process is determining what you can afford to pay every month, as well as what you have to put down as your initial down payment. This decision will be one of the most important, together with the location of your new home, as a payment that is beyond your comfort zone is going to create a lot of financial hardship in later months and years. A good mortgage broker will be able to assist you in determining what you can safely and comfortably afford to pay for your first mortgage.
Are you a first time home buyer wondering what you qualify for? Contact Us or call us at 877-538-7967 for a FREE, no obligation Pre-Qualification, with questions, or apply today.
Your budget may largely determine where you can afford to live in some cases, however, when in doubt about a larger home or better location, always opt for the best location you can afford. Even if you have to work with a home that might not be as large as you wanted, you will be able to resell the house later on and move to a larger one when you have established some credit history with your mortgage company. The worst decision you can make is to buy a large house in an area that you either do not want to live, or that is in an undesirable area.
Finally, before you start looking, make a list of those things that you need, and those things that you want. Be prepared to sacrifice some of your wants in favor of getting what you need. Contact Us or call us at 877-538-7967 for a FREE, no obligation Pre-Qualification, with questions, or apply today.
First Time Homeowner Programs in Massachusetts and Connecticut
In the State of Massachusetts, first time home buyers are required to attend education courses for some loan programs. The courses are offered through the Commonwealth or the financial provider offering the mortgage. Some of the mortgage programs offered to first time buyers in Massachusetts and Connecticut are:
FHA loans ~ These are loans that are guaranteed by the Federal Government are are used by more first time home buyers because they are easier to qualify for and there is less of a down payment required for purchase.
VA Loans ~ Another Government guaranteed loan for those first time home buyers who either have an active military history or are the surviving spouse of an active service member. A Veteran can qualify for these loans with little to no down payment as long as they can afford to make the monthly payments.
Soft Second Mortgage Program ~ A program offered by the state for first time home buyers that allows them to increase their spending without incurring further debt through the use of a second mortgage. The first mortgage remains a conventional one and the second mortgage is subsidized. The use of this program lowers the first mortgage enough to allow the buyer to eliminate PMI or private mortgage insurance, which in turn reduces monthly payments. There is a 3% down payment required however, with half of it coming from the buyer, and half allowed to be a gift.
Local Home Buyer Programs ~ The State of Massachusetts offers certain programs for residents who meet certain financial and regional criteria, including mortgages for homes in need of substantial repairs and renovations, first time building mortgages, mortgages with closing cost and down payment assistance, and rural mortgage programs.
Are you a first time home buyer wondering what you qualify for? Contact Us or call us at 877-538-7967 for a FREE, no obligation Pre-Qualification, with questions, or apply today.
Types of Mortgages to Consider
Within these mortgage programs, there are various types of mortgages available. Having a good understanding of the limitations and benefits of all of them will help you make the best decision for your financial needs.
Adjustable Rate Mortgages (ARMs) ~ Just as the name implies, these mortgages have one interest rate at the start of the loan period, and then after a certain amount of time the rate will increase to within a range of whatever the prevailing rate is at the time. Adjustable rate mortgages can typically start off with a very low interest rate, and are more easily obtained because of the risk of the higher payment later on as interest rates can quickly increase causing substantial differences in mortgage payments from one month to another.
Fixed Rate Mortgages (FRMs) ~ For all but 30% of the homeowner population, fixed rate mortgages are the way to go. These mortgages offer home buyers a fixed rate over the entire life of the loan and a lot of variety as the majority of FHA or government guaranteed loans fall into this category as well. Government guaranteed loans, guaranteed by the Federal Housing Administration (FHA), are often easier to qualify for, and do not require as large of a down payment as the conventional FRM mortgage. These loans are also used to purchase both single family and multiple family dwellings as long as the owner will live in the home.
Although some lenders do not like to work with first time home buyers, due to the fact that there is little to no credit or payment history, there are adequate resources and mortgage opportunities for every kind of borrower.
If you have little need for down payment assistance, or any kind of special program, you will fare much better in the long run. Also, the loans that will be available to you with a higher credit score and your down payment in hand will be more plentiful, and in some cases carry an even lower interest rate than some of the first timer's special programs available.
For the most current information about any mortgage program, speak to an experienced and informed Massachusetts or Connecticut mortgage broker before making any kind of decision about a mortgage loan. Contact Us or call us at 877-538-7967 for a FREE, no obligation Pre-Qualification, with questions, or apply today.
Miller Mortgage is a licensed mortgage broker in Massachusetts and Connecticut. Located just north of Boston in Peabody, Massachusetts our mission is to provide the best customer service and the lowest mortgage interest rates. Our volume enables us to provide the best mortgage rates and programs in the Mass and Connecticut markets.
When you call Miller Mortgage, you’re speaking with local representative who knows the area - not an impersonal calling center. We serve all Connecticut and Massachusetts towns. As a local mortgage broker, we have expert knowledge of Massachusetts communities such as Worcester, Boston, Plymouth, Andover, Lowell, Newton, Peabody, Middleton, Danvers, and Quincy.
We’re here to help build your financial freedom and to be an ongoing part of your financial future. As part of that goal, we offer free pre-approvals and prompt service. All types of credit and income are welcome and there’s absolutely no cost or obligation. Apply for a mortgage pre-approval now via our secure web application or call us at 877-538-7967.
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