Can you get qualified? Even without a substantial down payment saved, you’ll find there are programs—such as the FHA loan program—that make it possible for you to become a first-time home buyer.
Make Your First Home Purchase Your Best-Ever Decision
Take advantage of interest rates. There’s no guarantee that interest rates are going to be this low forever. By getting out of the renter’s game and locking in low interest rates, you can begin a lifelong journey of wealth building.
Use less money down than you imagined. The concept of saving up 20% for money down against a loan can scare some first-time home buyers. But we’ll explain why that doesn’t always have to apply to you.
What You Need to Know About First-Time Home Buying
According to some statistics, a majority of renters who want to buy a home don’t move forward because they’re afraid they don’t qualify! But there are plenty of programs that make it viable for lots of people—even those with poor credit—to qualify.
For many first-time home buyers, the main issue is coming up with the down payment. Many of those who would otherwise buy a home feel they would move their purchase timeline forward if they could make the down payment.
With some first-time home buyers’ terms, it’s possible to pay with a relatively small down payment, much smaller than the usually-expected 20%.
Home sales are as hot as ever, with available homes sometimes going off the market in as little as three weeks in some areas—or even less.
Find favorable terms. When you approach it the right way, your first home purchase can be a door to great terms that help you with your monthly budget.
2 Ways to Use Your FHA 203(k) Loan
Buy a Fixer-Upper (and Fix It Up)
Or... Renovate Your Current Home!
Ryan and his company are great! They made it easy from the start, and were incredibly responsive every time we had a question. They presented us with a number of loan options and helped us select the one that was going to be best for our family. I would highly recommend them.- Marc Bonnet
Ryan and his team performed a miracle where others could not! My wife and I required a quick close on a property that just hit the market. We called our existing lender to see if they could provide assistance but were told that there was no possible way they could close in less than 30 days. Ryan and his team made the impossible possible for us, not only did his team have us pre-approved in less than 24 hours, but we also closed/recorded in less than 30 days! He was very professional, super responsive to email and phone, and was a pleasure to work with.- Holly McDonough
Obtaining a mortgage for a new home can be stressful… timelines, due dates and documents. His team made everything so easy and simple. Ryan Frandsen was professional and super responsive. He was in my corner the whole way. Two thumbs up and 5 stars all around.- Jeremy Smith
We have tried to refinance our house in the past with no luck. We were turned down without any explanation as to why, so we gave up for a couple of years. We spoke to our son and daughter-in-law about refinancing again, since they were just closing with theirs. With the interest rates being so low, we wanted to try again so they referred us to Ryan Frandsen. Our experience with Ryan and Camille and everyone on his team has been incredible! They took the time and actually told us the reason why we weren’t able to do it sooner. That is because they let us know that there were issues we had no idea about with our lenders. Taking the time and helping us with the complete frustration we were going through, they helped us to be able to get our refinance done and get rid of the horrible state we were in and not aware of. We cannot thank them enough for their patience, kindness and research in helping us!!!! We are recommending them to everyone we know, who needs help!! We cannot thank them enough for the time and effort and compassion that they gave us! Jeremy & Raquel Smith.- Charlyn Pollock
Me and my Husband used Ryan and his team to Refinance our house. I would highly recommend using Ryan to anyone who is wanting to purchase or Refinance a home. My husband told his parents about using him because all other agencies wouldn’t help them Refinance. They were very quick to tell them why other agencies wouldn’t help them and found a company to finish up the Refinance issue. Ryan Frandsen was the best loan officer we have ever used for Purchasing/Refinancing and won’t use anyone else but them. They were very quick to tell us everything needed to get the process going, they don’t hide anything, they are very straight forward and honest which is very hard to find these days. Thank you Ryan for all you have done for us and others we have referred to you.- Alexandra Elbert
Ryan was amazing to work with. He was knowledgeable and very responsive. Anything with mortgages is out of my comfort zone so knowing Ryan had our best interest as the top priority was great!- Derek Boggs
I recently worked with Ryan to refinance our home for a better rate. The process was seamless and everyone on Ryan’s team I worked with was responsive and helpful along the way. If/when I need help in the future, I’ll be going to Ryan for sure!- Paul Weiler
My wife and I have worked with Ryan in the past. Ryan reached out to us to let us know the options available in the current market. We were very please to see how much savings we could get. Ryan made the process very simple and he processed our documents very quickly before our newborn son came home from the hospital. Ryan also scheduled to have the title company representative come to our home to sign the documents. If you have looking for a mortgage or a refinance, we definitely recommend Ryan Frandsen.- Kallie Tueller
I worked with Ryan. And to be honest my home buying process was pretty stressful (from circumstances out of the lenders control) and they helped me through the whole process, getting me through so many stressful things when I thought it wasn’t going to work out. Ryan answered all my questions every day (even if I asked them over again because I was anxious) and I’m very grateful.- Kailey Lewis
We worked with Ryan on a refinance of our home. Ryan and his team were amazing to work with, very responsive and made sure to get us the best possible outcome. We have suggested our friends use Ryan to help with their refinancing as well!- Sue Bandley
Your Renovation Wish List Could Include...
Increase window size
Bring in more natural light
Finish a basement or attic
Create a mother-in-law apartment or guest space
Correct foundational issues
Protect your investment for the long-term
Add a detached garage when one does not exist
There’s room for everyone
Knock down walls
Open up the floor plan to create versatile, welcoming spaces
Flood-proof your property
Add a retaining wall to prevent expensive damage
Repair the pool
Tired of leaks and cracks? Fix the pool & start enjoying it
Expand or refresh the kitchen
Cooking is just more fun in an updated kitchen
Add square footage
Growing your family? Grow your home alongside it!
How Does a Renovation Loan Work?
Depending on the types of repairs you plan to do, you have two options when it comes to securing a FHA 203(k) Renovation Loan: Limited and Standard.
The Limited 203(k) loan
The Limited 203(k) loan is for non-structural or “cosmetic” repairs. It covers up to $35,000 in renovation costs. With a Limited loan, you can do nearly anything that doesn’t affect the home’s structure! Think kitchen and bathroom remodels, carpet and flooring replacement, painting, appliance replacement, and much more.
The Standard 203(k) loan
The Standard 203(k) loan is a loan for projects with repair costs over $35,000. It can be used for structural or non-structural repairs. With a Standard Loan, you have even more flexibility. You can expand the home’s footprint, improve accessibility for differently abled people, and even move the home to a different site.
What Do First-Time Home Buyers Need to Know About Buying a Home?
Why should I buy a home now and not rent until I can save up a massive down payment?
Because there are plenty of options for lowering your down payment! For example, the FHA loan program, which includes loans insured by the Federal Housing Administration, is great for people with low credit scores and not a lot saved for a down payment. That isn’t to say that you shouldn’t save for a down payment—but remain open to all of the options available.
How will I afford my home?
Pre-approval for a first-time home buyer can be a major step in the process, and it’s easier than you think. A pre-approval is essentially a (conditional) promise from a lender that they can offer you the mortgage terms you need to make an offer on a house. This requires an application process that’s much simpler than you might imagine—and great for first-time home buyers who want to shop around and demonstrate to a seller that they’re serious about their offer.
Should I save for a down payment?
Absolutely. Just because you don’t necessarily have to make a 20% down payment on your first home doesn’t mean that you should eschew the process completely. Having a substantial down payment saved never hurts.
I have a low credit score. What kinds of loan programs are there for me?
If you go through the application process and make sure that your payment is in line with what you can fit within your budget (the typical recommendation is a mortgage that takes up no more than 25-33% of your household budget), then you’ll find it’s possible to afford your first home—and the process may be much simpler than you imagined
How do I get pre-approved?
In addition to the FHA loan program as mentioned in the previous answer, you should also look at your qualification for: the VA loan program, the USDA loan program, and even the Good Neighbor Next Door buyer aid program.
What should I do next?
Simple. Click any of our buttons above and find out if your first time home purchase can be as easy as we say it is here. Don’t worry about a low credit score, either—you’ll find that there are plenty of programs out there that can help.