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First time Home Buyers Mortgage Program

Charles D'Alessandro of Fillmore Real Estate interviews a mortgage professional. The question is what does a first time home buyer do to ...

Are 3% down mortgage programs for first-time homebuyers only?

Fannie Mae says first-time buyers:

will use the property as their primary residence have had no ownership interest (sole or joint) in a residential property during the three-year period prior to the purchase "displaced homemakers" can also be first-time homebuyers if their only property ownership in the last three years was jointly with a former spouse. In some cases with first-timer buyer programs, at least one borrower on a loan must complete a homeownership education program prior to loan closing.

With Freddie Mac, the description of a first-time buyer is much the same.

Local programs and down payment assistance

Finally, there are special programs sponsored by local governments offering assistance with down payments and closing costs. They are usually available only to first-timers, with one exception: if you buy in a "redevelopment area," you can often get this help if you're a repeat buyer or even buying investment property.

Rising heat in home prices makes buyers rush to riskier mortgages

ARM demand usually rises from the first quarter to the second quarter, because spring is the busiest season for homebuying, and it's when families dominate the market, searching for bigger, higher-priced homes. Still, the jump in ARMs in the spring of 2016 was 15 percent compared with this year's 40 percent jump. This makes the case that buyers this year are struggling with affordability and opting for a lower-rate product.

While mortgage rates remain very low, historically speaking, they have been inching up. The vast majority of homebuyers favored the safety of the 30-year-fixed rate mortgage since the housing crash, but weakening affordability is now changing that.

Home prices have been rising steadily for the past three years, and while it looked like the gains were flattening recently, they appear to be heating up again. Prices nationally jumped 6.9 percent in August compared with August of 2016, the biggest gain in three years. The annual gain in July was 6.7 percent, according to CoreLogic.

What are the best first time homebuyers mortgage programs today??

Lots of programs designed to assist with the goal of a home purchase.

Try a local mortgage broker, shop online such as Washington Mutual, Countrywide and make some comparisons.