Buyer Programs Limitations\Restrictions

Here is some information on 1st Time Buyer Programs Limitations\Restrictions. Usually the restrictions are in place to protect the borrower from getting into trouble, since with many buyer programs you don’t need to invest much money.

The following is a list of things that might disqualify someone from a program or they may be suited for a regular  through  FHA or Fannie Mae/Freddie Mac. .

• Debt ratios are much more conservative (43% to 45% of your total income for all debt)
  With a program you may only qualify for a 300k home VS a regular FHA loan you would qualify for 400k. (example only)
• Credit scores must be above 640 and the programs improve as your fico score increases.
• Sales Price and Location restrictions.
• Little more paperwork
• Might have to do a Class on budgeting and home buying
• Home warranties are often mandatory (good thing!)

If you have any questions on 1st time Buyer Programs call us at 909-920-3500