Looking to buy a home but don't know what to do, first????

What should I do first?

I am not sure which road to chose from? Do you ask yourself this question? It may seem that the Purchase of a Home is getting more and more difficult now that FHA is making some major changes to its required funds for closing it's even more important than ever to know what is available to you. Here is the biggest change; SELLER CONTRIBUTION IS HALF OF WHAT IT ONCE WAS (now 3% and before was 6%) but the other part of that You don't have to give that money! With the Down Payment Assistance here in Houston there are so many Down Payment Assistance Programs for all areas. So there is no reason for you to not be checking into a Down Payment Assistance Program FIRST. There are a lot of programs to look at so I always suggest that you have a knowledgeable Loan Officer that specialises in your area of town to help you with the search of your County or City.... It can be confusing if your not completely up to speed on the programs.

Each Grant Program has there Guidelines, you must meet them and the property has its own Guidelines to as well. Some times you the client will qualify but the home may not so it is very, very important that your working with someone who has "done these before" so you can avoid some major set backs.

Below you will find some of the Guidelines for Properties in Pasadena, City of Galveston, Galveston County, Baytown, and others:

Down Payment Assistance Amount: $7,500 for Existing home, $14,500 for New Home, $19,000 for Sunrise Meadows Subdivision.

1. A Conventional (conforming or non-conforming), Portfolio, FHA, VA or Rural Development (RHS) mortgage loan.

2. A Fixed Interest Rate Mortgage for the life of the loan is preferred, unless written approval is given.

3. Buyer's Front Ratio cannot exceed 33%, (based on Seth's Income calculations) unless written approval is given.

4. Buyer's Back End Ratio cannot exceed 45%, unless written approval is given.

5. No Prepayment Penalties will be allowed.

6. All Buyers must contribute at least $500 of their own funds toward the transaction.

7. Loan Terms must be between 10 - 30 years.

8. Assets listed on 1003 Loan Application may be counted as Assets of buyer and calculated as Income calculation.

9. Buyers may not have Liquid Assets that exceed two times the amount of assistance applied for. This includes gifts listed as Assets on 1003. Any such gift will be counted as Assets and in income calculations.

10. Gift Programs used in combination with our funds are allowed, but must be approved.

11. If Buyer is requesting more than one assistance program, written approval is required.

12. Seller contribution can be up to 6%, but buyer cannot receive any money back at closing.

13. The same person to act as both Real Estate Agent and Lender in same transaction.

Every loan is different and not every case is the same so there may be other conditions during the loan process. There are income limitations and there are property limitations as well. Feel free to contact me for more details or scenarios at: loans@goldquestfinancial.com

This was created by Frank Marta (Texas Home Loan Specialist).