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!
Thomas Mancuso has been excellent in handling the refinance of our home in AZ Through a friend who works in the Reno NV Mortgage Business, he came highly recommended. They told us he was the best person in AZ. Again, he was excellent, very personal and professional service. He walked us through the whole process. He gets my highest recommendation and you are crazy if you don’t use Thomas !!!- Samuel Bornholdt
My husband and I had a great experience working with Tom Mancuso and his team at Nexa Mortgage. Once we made the decision to move forward with our mortgage refinance everything was set in motion. Each step was efficient and the closing was quick. We are relieved to be saving so much money each month.- Kimberly Malnar
I have purchased many homes and refinanced several times in the past, but never 3 properties at one time, Arturo made these transactions simplified and closed quickly at a time that was convenient for me, he also worked around my busy schedule for my convenience. I would recommend Arturo to anyone and he will be my first to contact with any future business.- Rick Thompson
I can’t say enough about Thomas Manusco and his team. I have bought several homes over the years and by far this was the simplest experience I’ve had. Thomas was always responsive and kept us up to date on the whole process.- Hannah Pennington
Arturo went above and beyond! Made sure everything was one on point when purchasing my house!! I will always recommend Arturo Best of the Best!!!- Antonia mcdonald
My husband and I enjoyed working with Thomas Mancuso. Thomas Mancuso went out of his way and beyond to help us with our home loan, we were buying a home! He made every effort to make sure we got the appraisal on time. He answer our phone calls, kept us informed about our loan! He listened to us in everything and was always there for us! We highly recommend Thomas Mancuso and NEXA Mortgage!! It was a pleasure and wonderful to work with Thomas Mancuso! He’s a great guy and my husband and I see him as one of our good friend! Thank you Thomas for looking out for us!!!- Michelle Urciel
We had the very best experience w Nexa. Arturo Viramontes was with us every step of the way and made our experience so much easier. He was genuinely concerned and so helpful. He went above and beyond. I would highly recommend Nexa Mortgage and Raul Viramontes. Thank you Raul for making our dreams come true.- Norma Tadeo
I HIGHLY recommend Arturo Viramontes at Nexa Mortgage” with any of your real estate needs. I appreciate his expertise and ability and willingness to help me refinance my mortgage loan. He walked me thru each step and made sure I understand what I was signing and he made himself available to me via any method of my choice – email, business phone or cell phone, which I greatly appreciated. Arturo, even stayed in touch with me during my car accident while I was going thru my refinancing process. He really does care. I am grateful for all your hard work and devotion Arturo. I see him as one of my good friends. I truly hope you give him a chance to help you. I am glad I did! Thanks again Arturo- Elly Silva
(Translated by Google) I was lucky enough to carry out my refinancing with Arturo Viramontes, who, always with great patience and professionalism, explained the process step by step and clarified all my doubts. Excellent professional. We will certainly work together again. Recommended. 👍 (Original) Tuve la suerte de realizar mi refinanciamiento con Arturo Viramontes, quien siempre con mucha paciencia y profesionalismo, me explicó paso a paso el proceso y aclaró todas mis dudas. Excelente profesional. Sin duda volveremos a trabajar juntos. Recomendado. 👍- Andrea Pino
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.