how easy is it to get a first time home owners loan?

Question

we live in wisconsin and are looking into getting a first time home owners loan. we have no credit. do you know of any good places that arent high in interest and are easy to work with? it would be for a family of four with the income of $1600/month. any help here would be appreciated.

Answer 1

All banks just about offer the same products and loan programs with the different qualifications in each of their programs.

Your interest rate is based on your credit score and how well you have paid your consumer debt over time.

In order to find out the type of loan programs you are qualified for you will have to fill out a loan application,preferrably with a mortgage broker, which you can find one in your local telephone book.

He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will then run your credit report which will have your credit scores. These credit scores will determine your interest rate.

The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

When you speak with the mortgage broker you will need the following documents to complete the loan application

#1 One month of pay stubs for each person that will be on the mortgage.

#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

#3 Two years of federal income tax along with the W-2 that match.

Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home.

In this pre-approval letter will be the amount of house you are qualified to purchased.

Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.

Your mortgage broker will now order an appraisal to show proof of the property value.

The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.

After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

I this has been of some use to you, good luck

"FIGHT ON"

Answer 2

There are programs out there for people that have minimal to no credit. The interest rates are not the best but you should get something decent. The more money you can put down on the home the better rate you will qualify. One thing you will have to watch is the cost of the new home. $1,600 a month combined income is not a lot of money so depending on other debt that you may have you will only qualify for a mortgage payment of around $640 a month. that should equal a home of around $90,000. Good luck on finding the right home for your family.

Answer 3

With an income of $1600 a month depending on your other debts you should qualify for a nice home in the price range of $30-$50,000.

Answer 4

It's not as hard to get a home loan as you think. Although you might not have credit, if you have enough to put down and the property appraises high enough, most banks will be glad to loan you the money. This is because they own the house and if you default, they'll sell it and pay off your loan.

Answer 5

The US dept of Housing and Urban Development has some excellent programs for first time home buyers for middle and low income families.

http://www.hud.gov/offices/adm/handbks_forms/handbooks.cfm

http://www.hud.gov/homes/index.cfm

Answer 6

There are many programs set up for first time home buyers.

Here is some additional info. Hope this helps.

Answer 7

my best advice would be to interview different mortgage brokers and see what they have to say.