Congratulations on your decision to buy a home now. Given the decline in prices and the lowest interest rate in years this can be a great time to buy. The government's new tax deduction makes it even more adventageous for a first time homebuyer.
Especially for first time homebuyers there are many programs available. If you are thinking of buying in Brockton there is a great program for short sale or bank owned properties. This program has a lower interest rate, closing costs and down payment restrictions.
There are many other programs which vary by your circumstances, such as income and credit score. You mentioned that your friend's credit was not as good as yours that is something that could be discussed and possibly fixed.
I do alot of work with first time homebuyers and would love to work with you. My experience can help you navigate the financing and purchasing procedures. Give me a call at 774-766-8439 and I would be happy to speak with you.
I look forward to working with you,
Debbie Blais Real Estate
Here are some links to some useful sites with information for first-time homebuyer programs in Massachusetts:
MassHousing at https://www.masshousing.com/portal/server.pt?open=514&ob
Massachusetts Housing Partnership at http://www.mhp.net/
Housing and Urban Development at http://www.hud.gov/local/ma/homeownership/buyingprgms.cfm
I trust you'll find the information contained in those websites beneficial.
1. I would stay clear of buying a home with a friend as co-borrower and co-owner- for many reasons.
2. If this friend has worse credit than you, the bank will only use his FICO/ credit score in determining their loan approval. So you may not qualify with him, and if you do- it will be at a higher rate and higher fees.
3. Depending on the town, (not Brockton), if you buy in a small town there may be available 100% financing programs still around.
4. More than likely, you will need to come up with a minimum 3% down payment- for an FHA mortgage. Some or all of that 3% can be gifted from a relative if needed.
5. Rates have gone up twice today. The market is very volatile. Once you find a place and get an offer accepted, you need to check with your mortgage officer and see if it is a good time, right at that moment, to lock in your rate- for 30-45 days usually.
If you need any further help with any of that, or maybe even a pre-approval, please feel free to contact me.
Thanks, and Good Luck,