First time home buyer, HELP!!!?

Question

I dont want to get raked under the coals buying my first house. I dont want my payment to start increasing out of the blue a year or two from now, and i dont want to get into a program that will make it hard for me and my family to afford a home. I want to get a good deal, and payment i can live with. I dont have great credit but it isnt terrible, so i may be looking at FHA, or some other program, any suggestions???

Answer 1

Shop shop shop for your loan. Different lenders offer different deals depending on how much money they "have to move". Sounds like you want a fixed rate loan. Don't pay "points" or loan origination fees unless the difference in the interest rate provides a lower payment that pays back that much money in the time you are fairly certain you will stay in the home.

You have some chance that you will lock in a fixed rate and then rates will fall later, but rates are fairly low historically still. You probably face a higher interest rate risk by taking an adjustable rate mortgage, and you have said you don't want that kind of risk.

If you are buying a starter home and know you will be moving in 5 years or less, consider a 5 year ARM (adjustable rate mortgage), but only if the rate is a meaningful amount less than the current fixed rate mortgage with the same (other) terms.

Answer 2

The first requirement that you have to do is be willing to do your research. Once you have learned what is available to you the next step is to get an agent help you with the process of locating viewing, getting the proper disclosures on the property and making the journey through the paper maze that follows.
To that end here is only a small portion of what is available to you
HUD’s Local Home Buying Programs in each state. From State Governments:
http://www.hud.gov/buying/localbuying.cfm
FHA Federal Housing Administration loan programs: http://www.fha.com/
FHA Rural Housing loan programs: http://www.rurdev.usda.gov/rhs/common/indiv_intro.htm
US Government Housing assistance grants all areas:
http://12.46.245.173/pls/portal30/catalo...
US Government Grants page: http://www.grants.gov/
US Federal Domestic Assistance catalog for all Federal Programs available to State & Local Governments & the Public
http://12.46.245.173/cfda/cfda.html
All government Benefit Programs* http://www.govbenefits.gov/govbenefits_en.portal
Department of Veteran Affairs – Home buying programs for Veterans:
http://www.homeloans.va.gov/veteran.htm
Federal Reserve, pamphlet on acquiring the best mortgage: http://www.federalreserve.gov/pubs/mortgage/mortb_1.htm
US GOVERNMENT CONSUMER TIPS ON HOMES: http://www.consumer.gov/yourhome.htm
Low Income Home Purchase Assistance (Private): http://www.nehemiahcorp.org/
AFFORDABLE HOUSING CONTACT LIST FROM REALTOR.COM US GOVERNMENT AND ALL STATES: http://www.homefair.com/homefair/servlet/ActionServlet?pid=187&art=contlist&cid=homefair
Low income housing assistance (private) Habitat for Humanity: http://www.habitat.org/
Finding out what benefits you are eligible for with the US Government*
http://www.govbenefits.gov/govbenefits_en.portal?_nfpb=true&_pageLabel=gbcc_page_questionnaire&_nfls=false
There are many more, I also wanted to mention that in here is not included all the assistance programs that your state will have for you from the state tax revenues, and in addition there are other things that you should consider besides the cost; such as safety, health and return of investment. There are many links in those areas too.
Lots of research but now you'll know what assistance is available to you.
Buena Suerte

Answer 3

Get a fixed rate loan. Property taxes can make your payment go up, there's not much you can do about that. Some counties have a cap on how much the taxes can increase in 1 year, others don't. I think being taxed on how much you paid for your house would be more fair, instead of being taxed on how much your house is perceived to be worth, as that assessed money is not real money until you sell your house. That way you could predict your payment from year to year instead of being at the mercy of a greedy government.

Answer 4

even if you get a fix rate on the interes of you mortgage, still your payment can change becouse of county taxes or insurance primiums. now days property taxes and insurance primiums go up constanly

Answer 5

Find a Real Estate agent to represent you. We all have contacts that can help and can give you many names and sources. Good Luck.

Answer 6

Perhaps you should be looking into shared ownership with your local housing association?
see here

http://www.housingcorp.gov.uk/server/show/nav.550

Answer 7

make sure you get a fixed rate FHA is notorious for raising their prices month to month