College Station First Time Homebuyer Programs
Posted by Chris Tesch on Sun, Mar 06, 2011
Are you a first time homebuyer in the College Station or Bryan area? There are College Station First Time Homebuyer programs that might be able to help you and offer many advantages to stepping forward now! 
First, let's talk financing.... An FHA 203B loan is the typical loan that a College Station first time homebuyer uses. Unlike conventional loans with higher credit scores necessary for lower downpayments, FHA requires only a 3.5% downpayment. On a $100,000 home that would equate to $3,500 or on a $150,000 home a $5250 down payment. FHA does allow gifting of the downpayment as well. Loan limits do exist on FHA, but currently that limit is $271,050 so most first time buyers fit very comfortably in that price range.
You do not have to be a first time homebuyer to qualify for an FHA loan, however, you typically can't have more than one FHA loan at a time except for very specific circumstances such as relocation, adjustment of family size and a few other isolated criteria. Some of the basics are:
1. Minimum FICO credit score of 620.
2. FHA loan requirements will allow a home purchase two years after a Bankruptcy.
3. FHA will allow a home purchase three years after a Foreclosure.
Debt to income ratios are a bit more generous than with a conventional loan as well. For more in depth information about FHA loans written by Tom Burris, an excellent Dallas lender, go to http://www.dallasloanguy.com/FHAhandbook.html.
FHA monthly mortgage insurance premiums are set to increase soon, so there is a definate advantage to buying now versus waiting. Also our housing prices deflated last year by 1-2% so now is the time to get maximum house for your money. With the addition of the Health Science Center and Scott and White Hospital many are expecting home prices to be up in a relatively short period of time. One huge advantage that you will have going FHA is the assumability portion of that loan. Currently FHA loans are going for (typically) under 5%. When you sell a credit qualified buyer can assume your loan. If rates have risen as expected this will make your home look like a relative bargain.
There will be more articles to come regarding College Station first time homebuyers so stop by often, or if you want your questions answered now call me, email me or text me! (979)574-1084 or Chris@ChrisTesch.com