Most First Time Home Buyers believe they must paddle upstream without a paddle in this huge river of mortgage mystification. Where can someone who has never owned a home get sound mortgage advice? The American dream of home ownership is clouded with concerns of down payments, low fixed interest rates, seller contributions, reserve requirements, and more.

At BeechTree Mortgage, we encourage consumer education especially first time home buyers. Our primary focus is on FNMA (Fannie Mae) conventional mortgage programs. Since 1968, Fannie Mae has provided financial programs that make it possible for low, moderate and even middle or high income families to buy homes of their own. This is especially evident with their numerous first time home buyer mortgage loans.

The dream of home ownership should be simple in respect to mortgage financing programs. BeechTree Mortgage professionals are always enlightening home buyers with the latest in mortgage programs.

One of the most popular is the My Community Home Buyer program. With a reasonable credit history and 2 years of verified employment; there is no down payment requirement. In fact, when negotiating the sales contract, keep in mind, the seller can contribute up to 6% towards your closing costs, prepaid interest and escrow account. Call or email one of our professionals now to discuss this latest mortgage programs designed with first time home buyers in mind.

These are a few mortgage options to consider while shopping for your new home:

FNMA’s FLEX 100: This Fannie Mae program includes no down payment and is available as a fixed or adjustable rate mortgage with principal and interest payments or interest only. Although PMI (private mortgage insurance) is required, your out-of-pocket expense can be as little as $500. Gift funds are allowed, and sellers can contribute up to 3% towards your closing costs, prepaid interest and escrow account.

FNMA’s FLEX 80/20: This is almost the same program as described above with one exception. The 1st mortgage is capped at 75% or 80% of the purchase price. Then a small 2nd mortgage for the remaining 25% or 20% of the purchase price is provided. This “split mortgage” technique removes the PMI requirement. There is a catch however; 2nd mortgages have stricter qualifying guidelines than 1st mortgages and 2nd mortgages have higher rates simply because they are in 2nd position.

FNMA’s FLEX 97: This Fannie Mae program includes a low 3% down payment and is available as a fixed or adjustable rate mortgage with principal and interest payments or interest only. Although PMI (private mortgage insurance) is required, your out-of-pocket expense can be as little as $500. Gift funds are allowed for the down payment and sellers can contribute up to 3% towards your closing costs, prepaid interest and escrow account.

My Community Mortgage: This FNMA program allows first time buyers with little or no established credit history an opportunity to purchase their fist home. The best thing is the PMI requirement is less than the FLEX 100 program. Depending on the property, income limits exist so ask. And, sellers can contribute up to 6% towards your closing costs, prepaid interest and escrow account.

VA Home Loans: Veterans should consider the benefits they have earned with their VA Guaranteed Home Loan. Based on your VA Certificate of Eligibility, there is no down payment and sellers can contribute up to 4% towards your closing costs, prepaid interest and escrow account. Also, with this VA guaranteed mortgage, Veterans will enjoy the fact there is no PMI requirement. For more information call 321-987-9876, ask for Stephen Thaggard or email directly at: VA@beechtreemortgage.com and please visit The Department of Veteran Affairs Home Loan web site at: http://www.homeloans.va.gov/

These are just a few mortgage financing options, that first time home buyers should consider while searching for their first new home. If you are renting or leasing an apartment or home and thought homeownership is impossible; please think again. Call or email one of our mortgage professionals and ask which program best suits you. There are even down payment assistance agencies that can help if needed. You would be amazed when you discover how you can paddle downstream with help from experience professionals at BeechTree Mortgage, Inc.

Contact BeechTree Mortgage and we will provide a very accurate Good Faith Estimate and answer any questions you have regarding this article. Call now at 1-321-987-9876

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