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FIRST TIME HOME BUYERS HAVE OPTIONS

ZERO DOWN

USDA guaranteed mortgages provide buyers 100% financing of the purchase price. Buyer will pay for an appraisal, credit report and closing costs by title company (1-2%). Hawaii County household 1-4 income can't exceed $95,900; 5-8 can't exceed $126,600.

3% DOWN

3% down conventional and 3.5% down FHA are two great ways to get into your own home if USDA doesn't fit your profile. FHA loans cannot exceed 43% DTI and require 2 years consistent employment history. Conventional loans cannot exceed 49% DTI and require 12 months consistent employment.

5-20% DOWN

To get the lowest mortgage insurance, put the most down you can. Mortgage insurance is calculated by what percentage down payment, buyers credit score, price of property and DTI. The good news is you don't need a 20% down payment for your home purchase, you will just have to pay mortgage insurance for a few years. Your mortgage broker will guide you your first time.

Here's a zero down example:

Family of 4 earning $90,000 can qualify for $425,000 home loan . Family of 5 earning $125,000 can qualify for $610,000 first time mortgage.

In either example, housing expense plus other debts can't exceed 43% DTI (debt to income)

Here's a 3% down example:

$600,000 home purchase price. 3% is $18,000 down payment then add 1-2% for closing costs.  FHA loan limit in Hawaii County is $387,550, so 3.5% down equates to a $401,600 maximum purchase. Conventional mortgages have higher mortgage insurance than FHA so we will guide you to best understand your options.

What exactly is mortgage insurance?

Mortgage Insurance (MI) is an insurance policy you pay for to protect the lender in case you default on your loan. Similar to gap insurance on your car.  MI can range from $50 to over $600 monthly. Government loans like USDA, VA and FHA have very low MI but it remains the full term of the loan. Conventional mortgages have higher MI but it is removed after you achieve 20% equity in your home.

FIRST TIME HOME BUYERS ARE MY FAVORITE!

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Big Island Mortgages c/o VIP Mortgage Inc.

75-167 Kalani Street, #200, Kailua Kona, Hawaii 96740, United States

Call or Text: (808) 333-4341 fax: (808) 657-0181 doug@trustedhomeloanshi.com

Hours

Mon

9:00 am – 5:00 pm

Tue

9:00 am – 5:00 pm

Wed

9:00 am – 5:00 pm

Thu

9:00 am – 5:00 pm

Fri

9:00 am – 5:00 pm

Sat

Closed

Sun

Closed