Hello, everyone and welcome back to a new video sean's, a name and mortgages are the game today we're talking about first-time homebuyer programs today, and i want to start out by blowing your minds. I guarantee about 99 of you. Don't know this but to be classified as a first-time home buyer in the eyes of a mortgage lender, you only need to not have owned a home in the last three years, so that means you could have owned a home for like your entire life or, let's Say you've owned like a hundred homes, if you sold all pieces of real estate that you own and you waited three years you'd be classified as a first-time homebuyer again pretty crazy right. Well, let's continue to blow your mind or just give you some more information and facts that you need to know when you're going about buying your first humble boat, okay, so, first of all, i'm a licensed mortgage broker in arizona in texas, and i work very heavily With first time home buyers, so i talk about this information seven days a week, 24 hours a day, all the time, and let's start off by saying, we are not talking about down payment assistance programs today, because so many people think first-time homebuyer programs and down payment Assistance programs are the same thing when in reality they are definitely not.

A lot of confusion happens because some down payment assistance programs require you to be a first time home buyer but in fact, most down payment assistance. Programs actually don't require you to be a first time home buyer, so i just want to make sure we are crystal clear on that, because a lot of people get that confused. We are talking about first time home buyer programs today and not down payment assistance programs. If you want to learn more about down payment assistance programs, then i highly recommend you check out that video that i've made previously, where i break down everything you need to know about down payment assistance programs i'll leave it linked in the description for you, but okay.

So the first thing i typically hear from a first-time home buyer when we initially get on the phone or were emailing or anything like that is someone will come to me and say sean. I did some research and i found out about these awesome time - home buyer programs. It's basically where these banks pay you to buy a home yeah, not quite you most likely googled, first-time homebuyer programs on the interwebs, and you saw a whole slew of random lenders who spent tons of money on google ads. Who are just trying to get you to click on their website? And i can't blame you because they usually have great landing pages that promise the world saying things like very little: closing costs or little to no money down or see.

If you qualify for this super uber, crazy, unique loan program that only a first time home buyer would qualify for and then they'll have you fill out like a short little questionnaire or sometimes i'll have you fill out a full loan application and then, at the end Of the day, they pretty much just give you a normal basic loan program, but i totally understand where you're coming from, because that's how we get our information these days, we google around, and we pretty much just see all this information - that's usually heavily marketed at us And we don't usually get real factual info, which is why i'm making this video today. It's super important to understand that all lenders have the same goal in mind. It's to write loans with an acceptable risk, tolerance to be profitable, which basically just means the riskier alone. The more money that needs to be made for the bank or the lender for holding that risk, whereas on the flip side, the less riskier alone, the less money that needs to be made because there's not as much of a risk.

And it's seen more of as a guarantee, so what i'm getting at is, when you see some crazy, first-time homebuyer program loan advertise online. That just seems way too good to be true. It probably is - and i urge you to dig deeper into that specific loan program to see what specifically is going on, because, typically, it means higher fees, rates, etc. Okay, again, banks and lenders all have the same goal and it's to manage risk and to still be profitable.

So you want to really dive into those programs, make sure you're actually getting a good mortgage on your home. It's only like the biggest purchase you'll ever make, but with all that being said, you do get some special perks for being a first-time homebuyer, which is why i'm making this video today, when you're a first-time homebuyer you get all of the following perks and keep up With me, as this list is very long first, you are allowed to put three percent down on a conventional loan, regardless of how much money you make and that's it. So thanks for watching hope, you have a great day, but that's literally it, though, when you're a first-time homebuyer, you don't get any massive advantages to someone who's buying their second home or anything like that. The biggest thing is you're just allowed to put three percent down on a conventional loan instead of having to put five percent down and remember, like i previously mentioned some down payment assistance programs do require you to be a first time home buyer.

So for those specific programs you do get some special perks but again we're focusing on first-time home buyers, specifically not necessarily down payment assistance programs and don't forget that a first-time homebuyer loan is seen as a little bit more riskier because remember, you're putting very little down And there's no proven track record from you for making mortgage payments so in the eyes of a lender, it's still seen as a little bit more of a riskier loan so because of that you're. Not getting all these amazing perks of having wicked low interest rates and wicked low monthly payments and all that stuff, because again, at the end of the day, it's it's still all about managing risk and by this point, you're, probably saying they're going what the heck shawn. I thought we had all these perks as a first time home buyer. Well, i want to talk about what most first-time homebuyers fall into when it comes to which specific loan programs that you're going to be using when you're buying your first home.

So, first and foremost, it's the one we've been talking about it's a three percent down conventional loan, and this is a phenomenal option for first time home buyers. If you have good to great credit, if you have great credit you're going to have a pretty solid monthly mortgage payment, because your mortgage insurance rate's going to be really low, your interest rate is going to be pretty low and you can get into the home for Only 3 down, which is very very little so as a first time home buyer. If you have great credit that conventional three percent down route is a phenomenal option and i definitely recommend you take advantage of that now on the flip side, if you don't have the best credit and you're sitting there going well, you know my credit's kind of average. Maybe a little bit on the lower side.

Well then, the option you want to go with is an fha 3.5 down, and so many people think that you have to be a first time home buyer to get an fha loan when in reality you do not. It's just the fact that it is a very popular first time home buyer program. There's a difference there. You don't have to be one.

It's just a popular option for first-time homebuyers and fha. Loans are great. I love doing fha loans for kind of average to lower credit scores, because you're still going to have a pretty solid mortgage insurance rate, you're still going to have a great interest rate. Your monthly payment's going to be pretty reasonable for having a lower credit score and you're only having to put .5 percent down more than you would versus a conventional loan.

So it's still a really great option for first-time homebuyers and the more i think about it. I usually end up doing fha loans for first-time homebuyers versus conventional loans, just because your credit score has got to be usually 720 plus for a conventional loan to make sense over an fha one. But i hope by now you understand that 95 of first-time homebuyer programs are actually just normal loan programs that almost anyone can get, and banks and lenders just like to advertise them as first-time homebuyer options. Just because so many of you are searching around on the internet and searching for information about first-time homebuyer loans when in reality again they're just usually normal loans, but hey the more you know, but that's the truth when it comes to first-time homebuyer programs.

I hope you learned something new and also i'm going to be making videos very soon, specifically on conventional fha and even va loans and really diving into the qualification metrics of each, because there is so much wrong information out there. That's advertised online and also there's just so much vague information as a first time home buyer. You really want to know what's going on, so i want to make a video on conventional fha va about specific. You know front-end and back-end debt to income requirements.

You know job history, requirements, credit score requirements, all sorts of great stuff that you'll want to know as a first-time homebuyer. So that gives you all the reason to hit that subscribe button. So you know when i post those videos, but i've also got some other great information on this channel when it comes to real estate or just finance questions in general. So i highly recommend you check out some of the stuff on my channel i'll leave some stuff linked down below, especially that down payment assistance.

Video, because i can imagine a lot of you have questions about that. So definitely go watch that video, but at the end of the day i hope you enjoyed this one and, more importantly, i hope you learned something new. If you want to learn more about me and kind of the work i do and even some other great resources actually when it comes to mortgages, i definitely recommend you check out lending.shawnmauke.com. That's kind of my mortgage website, where all that stuff is you can check that out i'll leave it linked down below for you otherwise hit that like button comment down below - and i will see you in the next one - you.