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Hi, this is Robert Mangino. I'm with with Mike Henry, Vice President of Dollar Bank
Residential Lending, and we're here to talk about first-time homebuying.
Mike, what does a first-time homebuyer need to know? Well, first they need to know that this
is a great time to buy. Interest rates are at historic lows,
house pricing has come down in value some, so it's an excellent time to buy.
There are many programs out there available for first-time homebuyers.
I know we've heard a lot about "you have to have 20% down and it's hard to get a mortgage,"
but a lot of the programs that have been around for years are still in place.
FHA, some of the state bond programs are still all available to first-time homebuyers.
Pre-approval is important. When should they get that done?
They should get it done before they sit down and talk with a realtor.
Before they start looking at homes. It's important to know how much you qualify for,
and what kind of program you're eligible for and how that might affect
your negotiation with a seller.
You talked about downpayment. How much is required now?
Well, there's basically two types of loans. There's a conventional loan and an FHA loan.
A conventional loan now you can have 5% down as the minimum downpayment.
FHA is 3.5% down. And you'd decide between the two
based on how much money you had available and certain ones you can get a gift from a
parent or relative as your funds for a downpayment.
Thank you, Mike.
For more information, contact a Dollar Bank mortgage expert
at 1-800-344-LOAN or visit dollarbank.com.