Is there really such thing as 0% down?
by Kelle Wirt
For
first time homebuyers, a real estate transaction can seem like a scary and
daunting ordeal. One of the questions I get asked most often is, “Is there
really such thing as 0% down for first time homebuyers?” Despite the old adage,
“If it is too good to be true, it probably is,” in many instances, the answer
is YES. In Texas, the two most utilized programs for first time homebuyers are
the SETH program and TMP- 79. Even without these programs, interest rates are
at a record low and home buying has never been more affordable – as long as you
have a professional REALTOR® on your side who knows the ins and outs of these
programs and knows you individually to provide you with the best assistance.
What are the SETH program and TMP-79 and how can they help first time
homebuyers with 0% down?
The
SETH program provides down payment assistance and tax credit for eligible loans
which include FHA, VA, and USDA-RD. There are some eligibility requirements and
a course is mandatory. Please see this site for more
information. TMP-79 (“Taxable Mortgage Program”) is also known as “My First
Texas Home.” Provided by the Texas
Department of Housing and Community Affairs, this is a relatively new
assistance program to help with a fixed interest rate as well as closing costs.
More in-depth information can be found here.
What is the bottom line for a first time homebuyer?
The
bottom line for a first time homebuyer is this: you need a professional
REALTOR® in your corner who will give you not only the information on
assistance, but all the information
to make an informed decision that is right for you. For example, while these programs
are a wonderful way for first time home buyers to make an investment while the
market is great but there can be
reasons not to take them: later this year mortgage insurance premium (also
known as “MI”) cannot be removed for the life of the loan unless a mandatory
ten percent down was presented at closing as opposed to when the home reaches
the 80/20 loan to value split and if you move too soon after the purchase of
the home, you could be upside down. I will be happy to walk you through this
information, as I have dealt with it both personally and professionally and
know how confusing it can be. As your REALTOR®, I am here to provide you with
the ability to make an informed decision,
not to make the decision for you. Feel free to email me at kellewirt@gmail.com or call me at (830)
237-8463 if you are looking for a home in the Central Texas area. If you are
looking outside the Central Texas area, please be sure to bring these and any
questions up to your REALTOR®
No comments:
Post a Comment