A GUIDE TO LOAN PROGRAMS FOR FIRST-TIME HOME BUYERS

Loans

 

VETERANS AFFAIRS LOANS (VA LOAN)

Active-service military members, surviving spouses and veterans are provided the VA loan by the U. S Department of Veteran affairs. You won’t require any down payment for buying the phone and the interest rates are feasible. They are provided by private lenders such as mortgage companies and banks. They offer up to 100% funding on the value of the house. There are several benefits which accompany this loan. To help the borrowers stay away from default, good assistance is provided. The seller may pay the closing costs. A prepayment penalty may not be charged by the lender himself. Unless the price of purchase is above the property value, no down payment is required. Reductions of property tax are offered by many states as additional benefits to veterans. If any difficulty is faced in making the mortgage payments, the negotiations are carried out by the VA with the lenders on your behalf. In order to be qualified for the VA loan, one does not require minimum credit score or to pay for private insurance for a mortgage.

NATIVE AMERICAN DIRECT LOAN (NADL)

This program aids the American veterans, and their spouses purchase homes on federal lands. There is absolutely no need for a down payment or private mortgage insurance if eligible for the Native American Direct Loan. In the case of NADL, the Veteran Affairs (VA) is the lender. You obtain a fixed rate mortgage for a fixed period of 30 years and also a low closing cost if the first time buyer loan is chosen. You can also obtain a loan to refinance an already existing Native American Direct Loan to lower the interest rate. You must also live in the house you are using the Native American Direct Loan to buy, improve and build. All the credit standards must be met, and the necessary proof that you make sufficient money to pay the mortgage payments and various other costs must be provided. This loan has a reusable benefit which implies that you can get more than one Native American Direct Loan to buy, build or even improve another house in the future. After filling out the applications for a VA home loan COE (Certificate Of Eligibility), one must contact the regional VA loan center to begin the NADL loan process. If you qualify for this loan, this is the most preferred first time home buyer loan program that you can choose.

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