What is the minimum credit score needed to buy a home?
That depends on the loan product. Typically, you want your credit score to be at a minimum of 580 to qualify for an FHA loan.
If I don't have a high enough credit score, what can I do to fix my credit?
If you don't have a high enough credit report, you can visit our preferred partner's website www.creditrepairwise.com. Credit Repair Wise offers cost effective credit repair management specifically for people who want to own a home. Visit their website today.
Are there down payment assistance programs to help me buy a home?
Yes, there are programs here in Georgia that will help you buy a home. The most popular one is the Georgia Dream Homeownership Program. There's also:
Who is considered to be a first-time home buyer?
What is a gift letter and how can I use it to buy a home?
If you don't have enough money to make the down payment for your new home then one of your relatives can provide you with a gift but they must give you a letter stating that the gift is just that and not a loan. Contact your loan officer for details about a gift letter.
How do I qualify for your firm's Home Inspection Rebate Program?
What is an appraisal and how much does it cost?
Appraisals tell your lender how much the home that you are buying is worth. The home needs to appraise for at least the agreed purchase contract price. If it is lower than that amount, then you can negotiate with the seller to reduce the sales price.
Appraisals average in the $400 range. They can be due at the time of the appraisal or wrapped in with your closing costs. Contact your lender for details.
What is a home inspection and why is it needed?
How many different types of mortgages are there?
Conventional Loan: Conventional loans can be either fixed rate or have adjustable rates meaning that the rate can fluctuate based on the market over time. Typically conventional loans are used when borrowers don't qualify for other loan types. For example, if you are buying a second home, then you will need to use a conventional loan. Conventional loans also have a higher down payment requirement of 10% or 20%. Freddie Mac has a conventional loan product called the Home Possible Mortgage that has a 3% down payment option.
FHA Loan: These are the most common loans for first-time home buyers. This program allows you to make a low down payment of 3.5% but can be used in conjunction with a downpayment assistance program.
VA Loan: These loans are reserved for military service members, active or not, and their families. Borrowers can receive 100% financing for the purchase of their home. A letter of eligibility must be received from your local VA office.
USDA Loan: These loans are offered by the US Dept of Agriculture which promotes homeownership in rural areas. The USDA provides an eligibility map on their website. You can check the area that you are interested in on the map to see if you qualify for this financing.
What types of documents are needed from a lender?
Copy of your driver's license
Copy of your SSN card
Last two paystubs
Last two months bank statements
Last two years W2