If you are looking to purchase your first home in Florida in the near future, you may be considering first time home buyer loans in Florida. For some individuals, a first time home buyer loan is the only and most important way to purchase a home. To make things easier, many credit unions in most states, including Florida, offer tailor-made home loans for first time buyers. These types of home loans provide customers with attractive benefits that can make their first home buying experience less costly and more effective. Unlike bank-issued home loans, these types of home loans offer subsidizing interest rate, grants, and also allow for a zero or low down payment. Also, first time home buyers loans are less restrictive in most cases.
What is First-Time Home Buyer Loan?
As mentioned earlier, first time home buyers loan offer a low or no down payment, reduced interest rate, limited fees, and the possibility of deferring payments. These types of loans are generally offered at federal level or by reputed credit unions in most states.
In first time home buyers loan, the first-time home buyer is defined as an individual who has not owned a house for three years. This may also include single parents and separated homemakers who only owned a home earlier with a spouse.
First time home buyer loans in Florida are very popular and there are many reputed credit unions that offer this type of loan. In this type of loan, the credit union insures lenders against any potential default. However, in most cases the first time home buyers need to have a minimum credit score for taking a loan with a down payment. Apart from the credit score, the applicants need to submit full documentation of their income and assets and meet the lender’s debt-to-income ratio.
Advantages of First Time Home Buyer Loan:
The most important advantage of first time home buyer loans in Florida is the lower restriction than bank-issued home loans. The comparatively lower restrictions than the bank-issued loans on first time home buyers loans in Florida actually make them idea for the first time home buyers. These types of loans are ideal for individual that don’t have saved a large down payment.
People with little or no ability to meet high interest payments and fees are also ideal candidates for this type of home loans. Sometimes, individuals that don’t have high credit score to apply and qualify for bank-issued home loans or other home loan types may also apply for first time home buyer loan. The low interest rate on first-time home buyer loans is also another important reason of its popularity.
Nevertheless, there are some points that you need to keep in mind when applying for first time home buyer loans in Florida. First of all, if you want to buy more expensive property, first time home buyer loans are not right for you. Another important requirement is that the home you purchase with this type of loan should be your primary residence. You can never buy the home with an intention of renting it out.