Buying your first home can be an overwhelming and stressful process. Here at Flat Branch Home Loans, we strive to make this process easy and efficient for you and your family. We understand every home buyer has different financial and familial needs, and we’ve catered to your eligibility with many of our home loan programs. Our team of loan officers are ready to help you as a first-time home buyer settle into the home you’ve always dreamed of as quickly and affordable as possible.
Which loan programs are ideal for a first-time home buyer? Each of these programs offers a unique solution to a common concern for first-time home buyers. Some of these programs have additional requirements that must be met for eligibility. If you're curious about a particular program and it's eligibility requirements, please reach out to one of our experienced loan officers. Our experts can help determine the best program for you!
VA Home Loans
Veterans Affairs (VA) loans are available to eligible veterans who are interested in purchasing a home loan. This program offers zero down payment and no monthly mortgage insurance. VA-guaranteed loans have no prepayment penalties, a low credit score requirement, counseling and assistance available, and the potential to have two VA loans at the same time that can be applied over and over.
FHA Home Loans
The biggest benefit to purchasing a home utilizing a Federal Housing Administration (FHA) loan is the low down payment requirement. FHA loans require as little as 3.5% down towards the home purchase. Borrowers are charged a 1.75% up-front mortgage insurance fee that can be rolled into the loan. FHA loans allow for flexible underwriting guidelines, less-than-perfect credit, and varying avenues when it comes to down payment funds.
The United States Department of Agriculture (USDA) loans allow rural home buyers to purchase a home loan at an affordable price. There is no down payment necessary. A low minimum credit score of 600 is required. The USDA charges an up-front funding fee of 1.0% of the loan amount, which is a one-time fee that can be rolled into the loan. In addition, an annual service fee of 0.35% of the total loan amount is expected (paid monthly, with the monthly payment amount equating to 1/12th of the annual fee).
HomeReady loans are designed to allow a diverse group of potential home buyers access to a conventional loan product without a large down payment. This program requires a minimal down payment of as little as 3%, and gifts, grants and cash-on-hand payments are permitted. Several different types of income sources are allowed to be listed in the form of your income. HomeReady mortgages have affordable and cancellable monthly mortgage insurance (MI) and allow for more underwriting flexibility than typically allowed under standard conventional financing.
Home Possible Mortgages
The Home Possible Mortgages is Freddie Mac’s response to Fannie Mae’s HomeReady. Home Possible and Home Possible Advantage are two types of mortgages to help meet the needs of low- to moderate-income home buyers or buyers who live in high-cost or underserved communities. It allows for a bit more flexibility as it relates to down payment, mortgage insurance, and underwriting guidelines.
Community Champions Program
The Community Champions Program was developed by Flat Branch Home Loans to show appreciation to those who serve the community. This program can be used in conjunction with VA, FHA, USDA, and conventional loans. The Community Champions Program features a free appraisal and, in some instances, waiving of the Flat Branch Home Loans processing fee.
Down Payment Assistance Programs - MHDC Loans
Missouri Housing Development Commission (MHDC) loans are allocated in the form of a forgivable second mortgage. The down payment options vary by the loan program used in conjunction with other loan programs. Gifts are allowed for both programs, First Place Loans and Next Step. A low minimum credit score of 640 is required for the borrower. The monthly mortgage insurance varies by credit score and loan program used. Please contact your loan officer for more information on the local assistance programs available to you!