Saving for a Home

We talk young folks all the time who are doing some pretty creative things to save for a home in North Carolina.  And who can blame them?  Home prices are still lower than they have been – and mortgage interest rates are beginning to inch up.  If you are sick and tired of renting, you might be saving for a home too!  There are several programs available for you to consider.

See 3 Fun Tips For Saving Money To Buy A Home Near the Bottom

FHA Home Loans

These programs only require a down payment of 3.5%.   Qualifying is fairly easy for the program, and if you’ve been renting for the last three years (or haven’t otherwise owned a home) you might qualify for a Mortgage Credit Certificate (MCC) that gives you extra money with each paycheck!

Best part about FHA Home Loans?  The down payment can come from savings, gifts, or a grant of 3% from the State! That’s right, the FHA Home Loan Program allows you to purchase a home and get a combination of GIFTS from your family and friends!  You could get a gift for the down payment, and have the lender and the seller pay the other costs.

If you are getting married, they will accept a registry that shows the person’s name, and the amount of the gift!  So Uncle Barry could give you $25, Aunt Mary could give you $100, and so on – as long as you have the Bridal Registry documenting where the money is coming from!  If you need a registry for your guests, call us at 919-649-5058.

Don’t have a wedding coming up?  Well, you can still get a gift, or a series of gifts.  Although it’s more expensive, we know that some people will take out a Cash Advance from a Credit card and deposit it into the bank.  If you do that, understand that it will need to be in your account at least 90 full days before you apply for a mortgage.  That’s right, the money needs to be in your bank for 90 days before we verify your funds.

Conventional 3% Down Payment Loan

We offer 97% financing for Conventional loans – AND the 3% can come from a Family member, as a GIFT.  If you qualify, you can also receive up to 3% as a GRANT from the State of NC that’s forgivable (no payments).  You no longer have to show us proof of months and months worth of savings in the bank after closing either!

Credit Score qualifications for this program are the same as for a FHA home loan, at a minimum of 640.  The PMI on this program is better than the FHA PMI program – because you can cancel the PMI on a Conventional loan once you have a 20% equity position in the home – whereas on a FHA loan, you will have FHA PMI for the life of the loan.

No Down Payment  USDA Home Loans  NC

USDA Home Loans in North Carolina require no down payment at all.  The Seller is allowed to pay for closing costs, and often times a $180,000 home will only require the borrower to have around $1000 – and they often get part of that back at closing.  There are SOME costs associated with getting a mortgage that a borrower generally pays for, including your part of the homeowner’s insurance and your portion of the taxes.

USDA Loans do not require that you have a minimum cash reserve fund after closing.  The credit requirement is at least 2 scores over 640, and you can also use the NCHFA 3% grant to help with your closing costs.  The home you buy with a USDA Home Loan in NC must be within the USDA Loan Eligibility Map footprint, and those maps are changing on .

You must also meet the minimum household income limits for the county you want to buy a house in.  The income limits do have adjustments based upon how many people live in the home – and there are other adjustments we can make for social security income and child care expenses.

Are you a Veteran?

VA Home Loans are 100% loans too!  VA Home Loans are for Veteran’s to use for their primary residence.  However, there are some circumstances where you could use your VA benefits for a second home.  Some Active Duty Military pay is used for qualifications, like BAH and BAS – other special, one time income received (for instance income given in connection with a PCS move) would not count.  Co-Borrowers must either be a married spouse living in the home, or another Veteran with full benefits.

3 FUN Tips For Saving Money to Buy A Home

• Look on Pinterest for ideas.  Okay – I’m betting that is a Tip no one ever said on a mortgage blog -ever.  But there are TONS of great ideas on Pinterest on how to do things yourself, and how to make items you can sell at the Flea Market.  Money Saving Ideas on Pinterest are some of my favorites!
• Drink Water.  Again, something you haven’t heard anywhere else – but if you are spending $10 a week on Coffee, and another $20 on soft drinks – well, just start drinking water… maybe Tea, but making a gallon if Tea is cheaper than Coffee or Coke, or SPECIALTY water!
• Freeze Your Credit Cards.  I do NOT advocate closing an open credit card account.  But you will need to start paying them down some to get higher credit scores – so put them in a plastic container, fill it with water – and put it in the freezer. Then – when you really want a new dress to wear on a date next Friday, you’ll have to wait for it to thaw (so you don’t mess up the metallic strip, or melt it!) Borrow a dress from your girlfriend, or your sister.  Cheaper – and will help you save for a HOUSE!

So Relax! NC First Time Home Buyer Programs can help you save for a home in North Carolina!  Buying your First Home in NC is FUN! If you have more questions about Recent College Graduates – Tips For Buying A  Home… Call Steve and Eleanor Thorne, Or leave us a comment below – we try to answer all of them  We offer the Best Mortgage Rates in Cary NC, 919-649-5058.  Connect with us on Google Plus and Facebook