This is a YouTube video titled "🚨 First-Time Homebuyer 🚨" created on October 5, 2021, featuring Derek McGowan from the McGowan Mortgage Team at AdamC. In this video, Derek explains the concept of first-time home buyers in the mortgage industry, clarifying eligibility criteria and discussing various loan options such as conventional, FHA, and VA loans, including their benefits and requirements.
Hey guys, it's Derek McGowan with the McGowan Mortgage Team at AdamC. Today I'm talking about being a first time home buyer. Now by common definition this would appear to be somebody who's buying the first home ever. Not quite the case. There's a little bit more to it in the mortgage world. So this just really means somebody who has not owned a primary residence in the last three years. So you can get refreshed to become a first time home buyer again and reap those benefits. Now those benefits. So let's start with conventional financing, the most common of loans. Generally a minimum down payment requirement on a conventional loan is 5% as a first time home buyer or a refreshed and re eligible first time home buyer, that can be cut down to 3% down, making it a little more manageable, a little more attainable to get into a new home. Then if we switch gears to fha, for example, this is a lot of confusion around FHA and first time buyers. So many people coin it as the first time home buyer program. It makes some sense. There's a lot there that helps many first time home buyers. FHA is more lenient on the credit score. It stretches a little further on the debt to income. So somebody can qualify for a little bit more of a home than even conventional. So there are some things there that make it a little bit, possibly more favorable. And it still has a low down payment of 3.5%. But it's also important to mention that you do not have to be a first time home buyer and you can still get FHA loans. So you can have multiple FHA loans throughout your life and there's no time period between those that you have to wait. Then switching gears to the VA loan, the VA loan can be used over and over. You don't have to be a first time homebuyer to use that, but you can. And if you are a first time VA user, even if the VA does charge you a funding fee, which they do for many veterans, that comes directly from the va as a first time VA home loan user, that percentage on the funding fee is actually cut down. So you still get some benefit there by being a first time home buyer with the VA loan. With conventional and it's important to mention with FHA you don't have to be a first time buyer, although it aligns a lot of times with first time buyers.
