Buying A First Home Free New Mexico For Sale by Owner Tips Listing Information
Traditionally a down payment of 20% is required for a first home purchase.
FHA and VA loans are becoming increasingly popular due to recent changes in loan limits and underwriting criteria. Please review the information below to get up to speed on the terms you will need to know.FHA loans:
FHA loans are once again becoming a good choice for first-time borrowers. In many cases, they allow for a 3.5% down payment, which can come from a variety of sources, including gifted funds. With competitive interest rates and fees, easier qualification standards than many conventional loans, an FHA loan may be right for you.VA loans:
Available only to qualified military veterans, Veterans Affairs (VA) loans allow for 100% financing.Conventional loans with mortgage insurance:
Conventional first mortgage loans of greater than 80% of the property value (20% down payment) require private mortgage insurance. Mortgage insurance can now be obtained on loan amounts up to 97% of the home’s sale price or appraised value.Others also liked: