Welcome to the first time home owner loan website. This site is dedicated to bringing you the best information and rates available about getting your first time home buyer loan. Browse and click on our site links to learn more about loans in your area and on the net.

Pros and Cons of a First Time Home Owner Loan

Realizing a dream to buy a home gets easier with a home loan, and it’s a very special moment when you finally get to buy your first home. A first time home owner loan is a special financial assistance package to help first timers get started. In a way, you could call it socialized housing but with a twist.

The benefits of a first time home owner loan is small down payment, if any at all which means you don’t need to raise a substantial amount just to secure a home loan. Interest rates is subsidized are tagged at a very low rate which helps a new home owner afford the monthly payments. Some first time home loans will also offer you a grant to help you get started, or put a cap on the finance fees to be collected. If you pick a good company, they will even have a deferred payment scheme and/or forgive loans which can ease the burden of the monthly payments.

Expect to have to go through a stringent pre-qualification process because being a subsidized financial plan, the bank or financial institution will need to check your income status, as well as credit history. You will not be approved for this type of loan if you are earning enough to afford the regular home loan, regardless of whether this will be your first home or not.

Another disadvantage to this loan is the amount you can apply for. The assumption with this type of loan is that you do not have a large enough income to afford the regular home loan, so it just follows that you will be disqualified if you can.

In addition, you cannot qualify if you will not live in the house under the loan agreement, for any reason. It has to be your primary home. Finally, be ready for the home to be inspected before the final approval. It has to be in good condition with no safety hazards.