For the very best in customer service backed by the latest in mortgage technology, first-time home borrowers can trust the experienced loan officers at Bay Equity Home Loans.
High home prices often leave would-be first-time home buyers frustrated with the difficulty of coming up with a down payment.
Saving for a down payment can be a challenge even for borrowers with good credit and steady income. Most young people can’t fathom saving a 20 percent down payment plus the closing costs.
Here’s some good news: According to a study by the National Association of Realtors, more than 70 percent of non-cash, first-time home buyers – and 54 percent of all buyers – made down payments of less than 20 percent over the last five years.
Nearly 39 percent of Federal Housing Administration-insured borrowers got some kind of down-payment assistance in 2017, including from family, the government or another entity. That is up from less than 30 percent in 2011.
Besides FHA, there are USDA loans with no down payment for buyers in rural areas who meet credit and income requirements. There are zero down payment VA loans for current or former members of the military and their surviving spouses!
Many more assistance programs grants are administered at the state or local level. To see what’s available, do a Google search for “down payment assistance” or “first-time homebuyer grants” in your state. Bay Equity loan officers are educated on dozens of programs available in your area!
There are other misconceptions about home buying keeping first-timers out of the market. Seventeen percent of millennials believe they won’t be approved because of their credit score.
The average credit score for millennial homebuyers in the nation’s 50 largest metro areas is 656, according to a 2018 analysis. And applicants with credit scores as low as 580 may be eligible for some mortgage loan programs.
What’s more, the launch of the UltraFICO score later this year promises to be a game-changer for people with borderline scores due to limited credit history!
Per FICO, with a revised UltraFICO score based on factors such as average account balance and automatic deposits, 70 percent of those with at least $400 in the bank and no negative balances in the past three months should see their score improve!
Don’t sell your home-buying potential short! Our Bay Equity Loan Officers are available around the clock to answer emails, phone call and text messages. We’re here, whether its FaceTime or face-to-face.
Like you, Bay Equity Home Loans values both quickness and quality. We’re dedicated to customer service from application to close, and quick and accurate turnaround times in underwriting, docs, and funding.