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!
I was a first time home buyer and was very nervous about the entire process. Joe and his team went through every step and made it happen. I have a crazy schedule but they always managed to work around my schedule. I am very grateful to Joe and his team at Sun City Home Loans for making this stressful process so smooth.- Priscilla K.
It was an awesome experience for me and my family. The team made my transition very easy from the apartment to our dream home. Jessica the realtor went above and beyond to help us find our home. Joe, along with his team made the closing as smooth as possible. Very bless with their help!!- Gonzalo G.
The team at Sun City Home Loans is fantastic! I would recommend them 10 times out of 10. They helped me and my wife get our first home and did everything possible to make our dreams come true. They were always very professional, responsive and definitely made us feel welcomed and like family the whole way through. Everyone was extremely knowledgeable with any questions we had and always provided comfort throughout the home buying process!- Andre C.
First of all, I would like to thank Sun City Home Loans for making my home dream come true! I applied with Sun City Home Loans and after many obstacles, they were able to overcome them and make my loan happen. Secondly, not only did they make my loan happen. They also obtained the best interest ever! Finally, I would like to thank Sun City Home Loans again and highly recommend them to anyone looking to purchase their dream home to call them.- Erik T.
Amazing team, these professionals went above and beyond to make my loan close on time while answering all my questions. Joe was phenomenal, and the team really put up the time and effort to make it for an easy transaction, often times working really late in the evening hours. I was impressed with their work ethics and how they put the pressure on the lenders and underwriters to close the loans. Joe really know his trade and will be straight forward with you from the get go. My go to guys when buying another property.- Ramon R.
These are some of the best guys in the mortgage industry! Great interest rates & LOW FEES. They will treat you kindly & courteously throughout the process from start to finish. Always taken great care of my clients! They aren’t pushy either! Even if you’re not quite ready to meet the requirements they will gladly show you the way to get where you need to be and help get you there. So in conclusion, if you’re looking for a mortgage contact Mr Joe Martinez at Sun City Home Loans and he will get you set up.- Shawn J.
Joe and his team at Sun City Home Loans were absolutely outstanding from beginning to end! As first time home buyers, Joe and Emma guided us through the whole process, answered all questions promptly, and worked to get us the best rate/ loan possible. Joe is extremely attentive, communication was always open and professional, and his team made sure we were fully informed through the entire home buying process. We are forever grateful that we chose Sun City Home Loans to purchase our first home.- Erica D.
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 down payment! 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.