Category: FHA

First Home 100 & 100+: More Buying Power. Less Stress.

Posted on by Danielle Fox

Saving for a down payment is one of the biggest hurdles to buying a home, but it doesn’t have to be. If you’ve been searching for a down payment assistance program that can help you buy sooner without draining your savings, First Home Mortgage has a new solution just for you. Our First Home 100 & 100+ program is designed to give qualified homebuyers the financial boost they need to move from dreaming to owning, offering flexible assistance, competitive loan terms, and local expertise every step of the way.

For many homebuyers, the dream of homeownership feels close, yet saving for the down payment can be the biggest challenge. Even those who can comfortably afford a monthly mortgage payment often find it takes years to build the savings needed to cover the upfront costs. At First Home Mortgage, we believe that the down payment shouldn’t be the obstacle that keeps you from moving forward. That’s why we created First Home 100 & 100+, our new in-house program designed to help you bridge the gap and step into your home sooner.

First Home 100 & 100+ provides flexible down payment assistance that can be paired with an FHA 30-year fixed mortgage, giving you a steady, predictable payment and more buying power right away. Buyers can choose from two options: First Home 100, which offers 3.5 percent down payment assistance, and First Home 100+, which offers 5 percent. The assistance comes in the form of a small second loan with a fixed rate, making it easier to manage while keeping your home purchase on track.

What sets this program apart is its accessibility. There are no income limits and no geographic restrictions, meaning it’s available anywhere we lend. It’s designed for one- to two-unit homes, making it a great fit whether you’re buying your very first home or upgrading to your next. The program is available for purchases only, so it’s perfect for buyers who are ready to take the next step now. And because you’ll work with local experts who know your market, you’ll have guidance from the first conversation to the day you get your keys.

At First Home Mortgage, we combine speed and service. Our in-house underwriting means quicker approvals, so you can shop with confidence. We know the communities we serve and understand the challenges buyers face, which allows us to create solutions that truly fit your budget and goals. Most importantly, we see every client as more than just an application. You can count on personalized support, clear communication, and a commitment to making your homebuying experience as smooth as possible.

If saving for the down payment has been the one thing holding you back, First Home 100 & 100+ could be the key to unlocking your next move. Whether you’re ready to stop renting or looking to buy your next home, this program can help you move forward with less stress and more confidence.

Ready to own your home?
Let’s talk about how First Home 100 & 100+ can get you there. Contact us today to start the conversation.

The Federal Housing Authority Announces Update to Student Loan Policies

Posted on by Emily Gregory

Understanding which home loan program is the most beneficial for you when purchasing or refinancing a property is key to making a successful loan choice. Our loan officers are up to date on the best programs and newest guidelines and are here to educate you on your most advantageous options.

If you have current or past student loan payments, the Federal Housing Administration’s (FHA) updated policy could be great news for you! The Federal Housing Administration (FHA) helps buyers with low incomes and low down payments who may not qualify for conventional mortgages.  FHA insures the loans, giving lenders the confidence to provide financing to people who otherwise would not qualify.

Effective now, monthly student loan debt may be excluded from your debt-to-income ratio ( DTI) when the program, creditor, or student loan servicer indicates that the full loan balance has been forgiven, canceled, discharged, or otherwise paid in full.

For outstanding student loans, regardless of payment status, to calculate monthly obligations:

  • Use the payment amount reported on the credit report or the actual documented payment (when payment is above zero), or
  • Use .5 % of the outstanding loan balance, when the monthly payment reported on the credit report is zero.

What does this mean for borrowers with student loans?

This new update allows student loan debt to be calculated at 0.5% of the loan balance if the payment is not reported on the credit report when determining loan eligibility. This may give more purchasing power to some buyers with existing student loan debt.

For more information about these beneficial changes, contact one of our experienced loan officers today!

FHA Revises Condominium Requirements

Posted on by Emily Gregory

After a long-awaited update, the FHA is finally issuing a change to condominium guidelines. It was announced Wednesday that spot approvals are back, and steps are being taken in order to loosen eligibility requirements. With these revised guidelines, FHA is expecting the update to qualify an additional 20,000-60,000 condo units per year.

Changes that will come with the new guidelines include extending the re-certification deadline for approved condo projects from two years to three and loosening restrictions on owner-occupancy rules allowing projects to just be 50% owner-occupied. Department of Housing and Urban Development Secretary, Ben Carson, is hopeful the updated guidelines will open doors and allow more opportunities for homeownership. “FHA is publishing a new rule in the Federal Register that we believe will offer significantly more options for individuals and families to buy a home, specifically the kind of home more and more people are looking for in order to achieve homeownership, and of course that is a condominium,” Carson stated. Out of the 150,000 condo projects across the country, just 6.5% have approved financing through FHA.

The National Associations of Realtors has been advocating for change in FHA requirements for over a decade and stated they are thrilled with the change and the opportunities that will now be available to prospective homebuyers. NAR President John Smaby stated, “This ruling, which culminates years of collaboration between HUD and NAR, will help reverse recent declines in condo sales and ensure the FHA is fulfilling its primary mission to the American people.”

The updated guidelines will take effect on October 15, 2019.

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