Can you get qualified? Even without a substantial down payment saved, you’ll find there are programs—such as the FHA loan program—that make it possible for you to become a first-time home buyer.
Make Your First Home Purchase Your Best-Ever Decision
Take advantage of interest rates. There’s no guarantee that interest rates are going to be this low forever. By getting out of the renter’s game and locking in low interest rates, you can begin a lifelong journey of wealth building.
Use less money down than you imagined. The concept of saving up 20% for money down against a loan can scare some first-time home buyers. But we’ll explain why that doesn’t always have to apply to you
What You Need to Know About First-Time Home Buying
According to some statistics, a majority of renters who want to buy a home don’t move forward because they’re afraid they don’t qualify! But there are plenty of programs that make it viable for lots of people—even those with poor credit—to qualify.
For many first-time home buyers, the main issue is coming up with the down payment. Many of those who would otherwise buy a home feel they would move their purchase timeline forward if they could make the down payment.
With some first-time home buyers’ terms, it’s possible to pay with a relatively small down payment, much smaller than the usually-expected 20%.
Home sales are as hot as ever, with available homes sometimes going off the market in as little as three weeks in some areas—or even less.
Find favorable terms. When you approach it the right way, your first home purchase can be a door to great terms that help you with your monthly budget.
2 Ways to Use Your FHA 203(k) Loan
Buy a Fixer-Upper (and Fix It Up)
Or... Renovate Your Current Home!
Buying a home is the most stressful time, but it can be made a whole lot easier when you are working with great people who take the time to give good service. Justin and Christina were incredible throughout our whole process. They answered every little question we had in a timely fashion and regularly checked up on us to make sure we weren't overwhelmed. My husband and I were constant impressed with the level of customer service and care that we received. I truly recommend this team for anyone in need of a home loan.- Emily Shefer
Justin and Christina are incredibly helpful. As a first time buyer, they made the process as smooth and clear as possible. Christina is extremely attention to detail and responds so quickly which makes everything a lot easier. They were able to close my loan in a very short amount of time compared to what other banks were asking and I am looking forward to using them again for my next purchase! Thank you both for all of your help and patience!- Mel P.
We cannot speak highly enough about Justin and Christina. There professionalism and excellent customer service is exceptional. We bought our second home and they made the process easy and quick. I always heard that the process would be stressful. Well, I have to say that Justin and Christina made it really easy for us. They were practical, straight to the point and effective. We were clear to close short after submitting our application. We got a loan on the best terms we could. I absolutely loved that everything was online and through email!!! We even had a meeting via Zoom! Definitely the best!Thank you!!!- Bianca Acatitlan
Team JB was great!! Christina was our main point of contact but Justin was definitely overseeing it all. Highly recommended! He's very informative and has the experience. thanks for helping us with our home, we will never forget it! hopefully buy another home soon- Brian Chan
Justin and his team were AMAZING and, most importantly, very professional. We were amazed by how fast they were able to get all our documents in order and processed. One of my favorite aspects of Justin and his team was how readily available they were to help answer any questions we had at any time during the process. Justin made us feel comfortable and supported throughout the entire process. We would recommend him without a doubt! Thank you, Justin and the team!- Inez Alvarez
Justin and Christina were wonderful to work with! They helped my wife and I through the refinancing of our home. I have a unique situations but that did not bother them. They communicated what needed to be done on our part and they took care of the rest. All went well and we are so thankful for them both.- Tom Straeter
We just finished at refinance with Justin, Uri and Christina. They were very friendly and professional. Justin even called us from his cell phone to initiate the process. Uri got us started with the initial paperwork and to lock in our interest rate. Then Christina did all the rest of the paperwork and was very prompt. She persevered when certain documents were not being sent. She was very easy to work with and got our escrow to close on time. Would definitely recommend them, especially if you get the chance to work with Justin, Uri and Christina!- Michelle Butlig
For a first time home buyer, one of the most important, but often overlooked, aspects is a lender you can depend on to explain things to you and guide you through the daunting process of purchasing a home. Justin and Christina were exactly that. Because this is potentially the biggest purchase my wife and I will ever make, we had so many questions and worries going into and through the process. Justin and Christina not only provided answers, they eased our minds. Again, this quality is invaluable in a lender. Their accessiblity is also another huge plus. No matter the time, they were always an email, call, or text away.- Kris Divinagracia
Justin and his team were awesome. They were able to get the refinance done and worked out the best deal possible for us. I will continue to use him in the future.- Jamie Ellis
We purchased our new home few weeks ago, Justin and his team did amazing job. The whole process Christina and Uri were amazing. They helping us every moment!. Great team 👍 we are happy to work with New American Funding.- Patty Torres
Your Renovation Wish List Could Include...
Increase window size
Bring in more natural light
Finish a basement or attic
Create a mother-in-law apartment or guest space
Correct foundational issues
Protect your investment for the long-term
Add a detached garage when one does not exist
There’s room for everyone
Knock down walls
Open up the floor plan to create versatile, welcoming spaces
Flood-proof your property
Add a retaining wall to prevent expensive damage
Repair the pool
Tired of leaks and cracks? Fix the pool & start enjoying it
Expand or refresh the kitchen
Cooking is just more fun in an updated kitchen
Add square footage
Growing your family? Grow your home alongside it!
How Does a Renovation Loan Work?
Depending on the types of repairs you plan to do, you have two options when it comes to securing a FHA 203(k) Renovation Loan: Limited and Standard.
The Limited 203(k) loan
The Limited 203(k) loan is for non-structural or “cosmetic” repairs. It covers up to $35,000 in renovation costs. With a Limited loan, you can do nearly anything that doesn’t affect the home’s structure! Think kitchen and bathroom remodels, carpet and flooring replacement, painting, appliance replacement, and much more.
The Standard 203(k) loan
The Standard 203(k) loan is a loan for projects with repair costs over $35,000. It can be used for structural or non-structural repairs. With a Standard Loan, you have even more flexibility. You can expand the home’s footprint, improve accessibility for differently abled people, and even move the home to a different site.
What Do First-Time Home Buyers Need to Know About Buying a Home?
Why should I buy a home now and not rent until I can save up a massive down payment?
Because there are plenty of options for lowering your downpayment! For example, the FHA loan program, which includes loans insured by the Federal Housing Administration, is great for people with low credit scores and not a lot saved for a down payment. That isn’t to say that you shouldn’t save for a down payment—but remain open to all of the options available.
How will I afford my home?
Pre-approval for a first-time home buyer can be a major step in the process, and it’s easier than you think. A pre-approval is essentially a (conditional) promise from a lender that they can offer you the mortgage terms you need to make an offer on a house. This requires an application process that’s much simpler than you might imagine—and great for first-time home buyers who want to shop around and demonstrate to a seller that they’re serious about their offer.
Should I save for a down payment?
Absolutely. Just because you don’t necessarily have to make a 20% down payment on your first home doesn’t mean that you should eschew the process completely. Having a substantial down payment saved never hurts.
I have a low credit score. What kinds of loan programs are there for me?
If you go through the application process and make sure that your payment is in line with what you can fit within your budget (the typical recommendation is a mortgage that takes up no more than 25-33% of your household budget), then you’ll find it’s possible to afford your first home—and the process may be much simpler than you imagined
How do I get pre-approved?
In addition to the FHA loan program as mentioned in the previous answer, you should also look at your qualification for: the VA loan program, the USDA loan program, and even the Good Neighbor Next Door buyer aid program.
What should I do next?
Simple. Click any of our buttons above and find out if your first time home purchase can be as easy as we say it is here. Don’t worry about a low credit score, either—you’ll find that there are plenty of programs out there that can help.