What are the best options for first time homebuyers with little to no down payment and some debt?

Asked by Bethany Eskro, Thu Jan 2, 2014

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Elva Wormley, Mortgage Broker Or Lender, San Jose, CA
Thu Jan 2, 2014
Hi Bethany,

Speaking with a local mortgage broker is your best option. They will be able to review your situation and find the best programs for you.

Best regards,

Elva A. Wormley
Mortgage Consultant
(408) 615-8500
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981 / DRE #01274093
0 votes
Ron Beebe, Mortgage Broker Or Lender, Downingtown, PA
Thu Jan 2, 2014
Bethany, I am unfamiliar with Bethany, however, most all areas have a specific place that you can go for first time homebuyers counseling/classes. As an example, I am about 40 minutes west of Philly, PA and have sent three first time homebuyers to the Chester County Housing Partnership, and have been able to get my buyers grants up to $12000 toward their purchase. This is GREAT because it converts renters into buyers, and those buyers are fully educated on homeownership! It is a win-win for the community! Ask a local Realtor or lender for recommendations if you come up with nothing.

Good luck!
0 votes
Duane Murphy, Agent, Appleton, WI
Thu Jan 2, 2014

I would check with a local mortgage broker.
One option would be rural housing. It is a zero down program with little money out of pocket. Another option would be Wheda. A Wisconsin only mortgage option. This could even be used for the down payment in conjunction with a FHA loan.

Best of luck with your purchase and home shopping!!!

Best Regards!!
Web Reference:  http://www.duanemurphy.com
0 votes
Linda S. Cef…, Agent, Franklin, WI
Thu Jan 2, 2014
There are several different options, the two that I know of for sure are VA and USDA, but there are restrictions on both. Some debt is not necessarily a bad thing. The investors look at your debt to income ratio so again, it depends.

You should find a trusted loan officer that specializes in first-time home buyers and is able to walk you through this. Not all lenders are equal. Some can offer more options than others. Research, homework and inquiring of friends, relatives and people who have gone through the process should be helpful for you. I have several that I work with. If you would like me to forward them to you, I'd be happy to do that.
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