| Never before have things changed so quickly in the | | | | require much higher credit scores to be considered for |
| mortgage industry. Interest rates increase and | | | | approval. For example, if you wanted to apply for a |
| decrease depending on the markets, on an hourly | | | | loan with an LTV of 95,01 to 97% you would have to |
| basis. Loan programs are being changed sometimes | | | | have a minimum credit score of 680. With a credit |
| on a daily basis, others are being discontinued all | | | | score below the 680 watermark, you will have to put |
| together. | | | | down a down-payment of at least 5% or a 95% LTV. |
| With this in mind, first time homebuyers who were | | | | If you do fall in the range below 680, the minimum |
| counting on the first time homebuyer loan programs | | | | credit score for these programs is 620. |
| with 100 % LTV or 0 down must be aware that those | | | | However, do not feel that you have been shut out of |
| programs are no longer offered. Over the past month | | | | the market. FHA loan programs may be the way for |
| the MI or better known as mortgage insurance | | | | many first time homebuyers to go. Although they also |
| companies have cut back their exposure to these | | | | require a 3% down payment, they too allow for |
| types of loans. They will now only insure loans to a | | | | assistance with the down payment. On top of that, |
| maximum LTV of 97% on first time loans. That means | | | | interest rates are usually lower then many of the |
| the borrower must have at the very least a down | | | | conforming first time home-buyer programs. Also, |
| payment of 3%. For example if you were looking to | | | | many lenders will allow credit scores down to the 580 |
| purchase a home for $300,000, you would need a | | | | mark. |
| down-payment of $9,000. Now for those of you | | | | All in all there are still programs available for the first |
| whose stomaches just turned, please be aware that | | | | time homebuyer. One thing to keep in mind is that it is |
| many of these programs allow for the down payment | | | | very important with the many changes going on within |
| to come from other sources, such as relatives, | | | | the market, that you get pre-approved before looking |
| employers or charitable organizations. | | | | for a home. That way a loan officer can let you know |
| First time borrowers must also be aware that many of | | | | what your maximum loan amount is, thus giving you an |
| the credit score criteria have changed also. The | | | | idea what range of properties you can be looking at. |
| majority of first time homebuyer programs now | | | | |