Tag: 1% down mortgage

Three Rules for First-Time Homebuyers

first time homebuyers

Ready to stop wasting money on rent and invest in your own home? As a first-time home buyer, the process may seem overwhelming. Here are three rules for first-time home buyers and a basic run-down of everything you need to know to buy your first home.

  1. Get your finances in order

First and foremost, you need to get your finances in order to qualify for a mortgage. You don’t have to have perfect credit in order to get a mortgage, but most loans do have minimum credit score requirements. So it’s not a bad idea to clean up your credit as best as you can.

When lenders consider you for a mortgage, they want to see that your finances are consistent. Keep these things in mind when applying for a mortgage:

  • Don’t quit or change your job
  • Don’t make any major purchases, such as furniture, jewelry, or vehicles
  • Check with your mortgage officer before you move or withdraw any large amounts of money from your accounts
  • Check with your mortgage officer to find out whether you should pay off your debts or collections
  • Don’t use cash for a good-faith deposit, because it’s hard to track
  • Don’t have your credit report pulled too many times, because it can hurt your credit score

Before you get a mortgage, you’ll also have to get all of your documentation in order, including two years of W2 statements, tax returns (if commission or self-employed), 2 months of bank statements, drivers license and social security card. When you apply for the loan, you’ll need to provide all of the documentation to the lender within 24 hours, otherwise your loan closing could be delayed.

  1. Understand your mortgage options

When you talk with a loan officer, he or she can help you navigate all of the available mortgage options. In the past, 20% down payments were required, but programs are available that can help first-time home buyers put down as little as 1% on a 15 or 30-year fixed loan with a low interest rate and no Private Mortgage Insurance (PMI).

Riverbank Finance offers low and no-down payment loans, including government programs, such as the FHA loan, VA loans, and USDA Rural Development home loan. Riverbank also offers a 1% Down Conventional Mortgage, where the borrower only needs a 1% down payment and the lender contributes 2% to give the borrower 3% equity upon closing.

  1. Be ready to close on the house

Knowing the home buying process can help you be prepared so you can close on the house without delays.  After you’ve submitted all of your documentation and your mortgage is approved, you can begin home inspections and the home appraisal. The home appraisal typically costs between $400 and $600, which you’ll have to pay with a credit or debit card before closing.

Once the house is inspected and appraised, you can schedule the closing with your Realtor and the seller. Your loan officer and the title company will work together to finalize the closing costs. Closing costs typically run between 2 and 5 percent of the total price of the home you’re buying. If you are short on funds ask your loan officer about solutions to have your closing costs paid for you. From the application to closing, the process averages between 30 and 60 days (although Riverbank Finance may be able to close in under 2 weeks), and then you’ll get the keys to your new home.

From start to finish, Riverbank Finance can help you purchase your first home. Contact us at (800) 555-2098 to schedule a consultation with one of our loan officers.

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Purchase a Home with a 1% Down Mortgage

1 percent down home loan

Riverbank Finance LLC is excited to offer the new Conventional 1% Down with Equity Boot home loan program. This program is better than 99% financing. You purchase a home with a 1% down payment and we will pay up to a 2% down payment towards your home purchase!

Important Update! Last date for loan submissions is 5/31/2018. Program is being discontinued.

This new 1% down home loan option is a conventional mortgage loan that allows you to purchase a home for one month’s rent payment. There are no more excuses for making money for your landlord when you can buy with a minimal investment.

1% Down Mortgage Rates

Mortgage rates for the 1% Down Mortgage are very competitive with our low rates. Now is a great time to purchase with mortgage rates near the lowest in history. We are also excited to offer this mortgage option with no monthly Mortgage Insurance (PMI). This combination of a low down payment, low mortgage rate, and no monthly mortgage insurance option makes one of the best ways to purchase a home.

1% Down Home Loan Requirements

As with any mortgage, there are qualifications and restrictions for eligibility. A borrower must meet all conventional home loan requirements for credit, income and the property.

Below are a few program specific requirements:

  • Income Limits may apply
  • All borrowers must occupy the property as their primary residence
  • First Time Home Buyer online class required if borrowers have not owned a home in 3 years
  • Cannot have ownership interest in any other residential dwellings
  • Borrowers may receive their 1% down payment as a gift
  • Single Family Homes only
  • 720+ Credit Score Required
  • 45% Maximum Debt to Income Limits
  • 2% Lender Gift towards down payment (Up to $5000 Max)

*Income limited to 100% of Freddie Max Area Median Income Limits (AMI) Apply. If property is located in an Under served Area Census Tract then there are no income limitations. Click here for Michigan Income Limits for the 1% Down Mortgage.

Apply for a 1% Down Mortgage

Call Riverbank today at 1-800-555-2098 or apply online today!

Request Information Now!

Borrower contributes 1% down, lender contributes 2% of the loan amount up to $5000 for the down payment and the borrower is responsible for any different to get the required 3% down. The principal and interest payment on a $200,000 30 year Fixed-Rate Loan at 4.375% and 97% loan-to-value (LTV) is $998.57 with 0 points due at closing. The Annual Percentage Rate (APR) is 4.613%. The principal and interest payment does not include property taxes and home insurance premiums, which will result in a higher actual monthly payment. Rates current as of 10/2/2017.