My first home: with the help of these first-time home buying programs, you too can have the American dream.Raun and Christina Christina (krĭstē`nə), 1626–89, queen of Sweden (1632–54), daughter and successor of Gustavus II. From her father's death (1632) until 1644 she was under a regency headed by Chancellor Axel Oxenstierna. Swafford of Clarksville, Tennessee For other uses, see Clarksville (disambiguation). Clarksville is a city in Montgomery County, Tennessee, USA. Clarksville is the county seat of Montgomery County and is Tennessee's fastest growing and fifth largest city. , were thrilled thrill v. thrilled, thrill·ing, thrills v.tr. 1. To cause to feel a sudden intense sensation; excite greatly. 2. To give great pleasure to; delight. See Synonyms at enrapture. when they found out they were expecting their first child. Now that their family would be expanding, the couple felt it was time to take inventory and make some changes in their lives. They started by thinking about moving. "We realized we needed more space for the baby," says Christina. "Also, we were considering having my morn come and move in with us, and we thought owning our own land would be a wonderful thing." With that, the Swaffords packed up their townhouse town·house or town house n. 1. A residence in a city. 2. A row house, especially a fashionable one. and went looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. a home of their own. They purchased a three-bedroom house last April for $86,900. With interest rates still near historic lows and the growing popularity of low down payments and "no money down" mortgage programs, more families and individuals are taking the plunge The term Plunge has multiple meanings:
A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. , it allows owners to build equity, and it is a sign of a stable [financial] future," says Pierre Pierre (pēr), city (1990 pop. 12,906), state capital (since 1889) and seat of Hughes co., central S.Dak., on the east bank of the Missouri River, opposite Fort Pierre; inc. 1883. Dunagan, president of The Dunagan Group, which offers mortgages and other financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . Dunagan says many people are still delaying building wealth through homeownership because they think they must already have the money in the bank to do it. "People assume they'll they'll Contraction of they will. they'll will need 15% to 20% down to get their first home, which is simply not the case these days." Fannie Mae Fannie Mae: see Federal National Mortgage Association. , while not a lending institution Noun 1. lending institution - a financial institution that makes loans financial institution, financial organisation, financial organization - an institution (public or private) that collects funds (from the public or other institutions) and invests them in itself, is a government-sponsored enterprise that buys loans from lenders to make mortgage financing available to more borrowers. A number of financing programs that don't don't 1. Contraction of do not. 2. Nonstandard Contraction of does not. n. A statement of what should not be done: a list of the dos and don'ts. require the standard 20% down payment--or any down payment at all--are available through approved Fannie Mae lenders and mortgage companies. One of them is the Flexible 100 program, which is especially popular with first-time home buyers. Borrowers need only contribute $500 toward the down payment and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, . The Flexible 97 program, which allows borrowers to put up just 3% of the cost of the home, is also available through Fannie Mae. Banks have created similar programs to help new home buyers. To obtain a list of approved Fannie Mae lenders, log on to www.fanniemaefoundation.org See .org. (networking) org - The top-level domain for organisations or individuals that don't fit any other top-level domain (national, com, edu, or gov). Though many have .org domains, it was never intended to be limited to non-profit organisations. RFC 1591. or call 800-7-FANNIE. SPECIAL PROGRAMS MAKE IT EASIER Many of the new loan products for first-time home buyers have been created specifically to make homeownership easier, says Fannie Mae spokesperson Sandy Cutts Cutts is a settlement in the Shetland Islands, United Kingdom. It is situated on the island of Trondra off the west coast of Shetland Mainland. . "In addition to our Flex A development system for Flash-based applications from Adobe. Introduced in 2004 as a J2EE application, Flex compiles ActionScript code and XML-based user interface descriptions (MXML) into binary Flash files (SWF files). programs, we have the Expanded Approval/Timely Payment Rewards program for people with less than perfect credit. With this program, the homeowner makes on-time payments for two years, then after that time, their interest rate automatically lowers," she explains. Cutts also says Fannie Mae has rolled out a new pilot product called the Payment Power program, which allows borrowers to defer de·fer 1 v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. two monthly payments a year--but no more than 10 over the life of the loan--in exchange for slightly higher interest rates. The loan reamortizes, meaning that the skipped payments are recalculated into the remaining payments. This program may be especially beneficial for people who hold seasonal jobs, such as teachers and construction workers who may not have an income during certain times of the year. Dunagan says there are also 100% financing programs available for first-time home buyers but, in some cases, they have higher interest rates and higher private mortgage insurance costs. He says deciding whether having a higher interest rate is better than long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. renting is an important decision prospective home buyers will have to make. Christina Cowens thought the former was a better option when she decided to buy her first home in 2002. After moving from New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. to Minneapolis Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. to take an administrative position that would advance her career in education, she thought, "[Why am I] helping strangers invest and live well off of my rent money and I'm not receiving any financial return or benefit for myself?" Cowens found a dedicated real estate broker to structure a 100% financing deal through Countrywide coun·try·wide adv. & adj. Throughout a whole country; nationwide: launched a fundraising campaign countrywide; a countrywide search. Adj. 1. Bank's 80/20 program, in which a home buyer can get 100% financing by taking out two mortgage loans. The first loan will equal 80% of the mortgage up to $400,000 and the second will cover the remaining 20%, up to $100,000. The combined loans cannot exceed $500,000. In order to qualify for this program, the buyer's credit score must be higher than 580. The appraisal fee is the only out-of-pocket expense Countrywide requires of the home buyer. In Cowens's case, the seller of the house she wanted requested an earnest fee--a deposit that indicates the buyer's seriousness about purchasing the property--so she put up $3,000 of her own money to cover it. The seller did, however, pay the closing costs in the deal. Cowens bought her home with an adjustable-rate mortgage Adjustable-rate mortgage (ARM) A mortgage that features predetermined adjustments of the loan interest rate at regular intervals based on an established index. The interest rate is adjusted at each interval to a rate equivalent to the index value plus a predetermined spread, or of 7.8%. At the time of this writing, she was considering refinancing Refinancing An extension and/or increase in amount of existing debt. her loan at a fixed-interest rate of 4.5% through Countrywide. After researching the housing market in Long Island, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , four years ago, Karen and Raphael Gordon knew what they wanted in their starter home A starter home or starter house is a house that is usually the first which a person or family can afford to purchase, often using a combination of savings and mortgage financing. . "We had been renting for a while, were preparing to start a family, and wanted to invest in real estate," says Karen. "We figured we'd be here about seven years and hoped that, by that time, the house would appreciate in value." The Gordons stuck to their budget during their search. They looked through newspapers and visited numerous Websites and open houses but had trouble finding a home in their price range that they liked. One day, the couple was on their way back to their apartment after another frustrating frus·trate tr.v. frus·trat·ed, frus·trat·ing, frus·trates 1. a. To prevent from accomplishing a purpose or fulfilling a desire; thwart: open house when they passed a quaint quaint adj. quaint·er, quaint·est 1. Charmingly odd, especially in an old-fashioned way: "Sarah Orne Jewett . . . little home in Farmingdale. "We immediately called the broker on the sign to take a look at it. It was within our budget and we both thought it had great potential, so we immediately placed an offer because homes were going so quickly," says Karen. Although the property the Gordons fancied was appraised at $239,000, the owners of the home accepted the couple's offer of $209,000. The Gordons were able to secure a Federal Housing administration Federal Housing Administration (FHA) Federally sponsored agency chartered in 1934 whose stock is currently owned by savings institutions across the United States. The agency buys residential mortgages that meet certain requirements, sells these mortgages in packages, and insures loan and raise a 10% down payment. The FHA See Federal Housing Administration. FHA See Federal Housing Administration (FHA). usually has relatively low income requirements, but different states impose their own limits on how much you can actually borrow. Most FHA loans FHA loan is a federal assistance mortgage loan in the United States insured by the Federal Housing Administration. The loan may be issued by federally qualified lenders. require only 3% to 5% down. One of the most popular ones for first-time home buyers is the 203B, which is used for home repairs and renovations. The amount of the loan is based on the price of the home plus its renovation costs. For example, if a home costs $200,000 and it needs $50,000 in repairs and upgrades, the amount of the loan will be based on $250,000. Many HUD Hud (h  d), a pre-Qur'anic prophet of Islam. Hud unsuccessfully exhorted his South Arabian people, the Ad, to worship the One God. property owners take
advantage of the 203B loan. It's also popular with home buyers
looking to refinance Refinance1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. with past credit problems or little or no credit history. James Browne
James Browne (1793-April 1841), Scottish man of letters, was born at Whitefield, Perthshire. , a home mortgage consultant with Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. Home Mortgage, says many first-time home buyers don't take the home buying process as seriously as they should. He says that homeownership education is crucial to helping potential homeowners understand the financial aspects of buying and owning a home. For example, many would-be homeowners don't save enough money for home repairs and other emergencies before they secure their home, says Browne. The Gordons were smart and got their new home thoroughly inspected prior to its sale. This was key in helping them figure out how much additional money they'd need to put into the house to really make it livable liv·a·ble also live·a·ble adj. 1. Suitable to live in; habitable: a livable dwelling. 2. Possible to bear; endurable: livable trials and tribulations. . "It is important to be prepared for catastrophic incidents [that] may take large amounts of money [to resolve]," says Browne. Browne also emphasizes that first-time home buyers should know their credit score and debt-to-income ratio The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . He says a score of 680 to 740 is a good range to be in when looking to buy. "Anybody who has a credit score of 500 is in what I call an emergency room state, [which is] basically a near death position with their credit." He says prospective home buyers should obtain their credit reports about six months before deciding on a property. This gives them time to review the report, fix any problems they may discover, and then improve their debt payments to build up their overall credit rating. A credit score above 740 is considered excellent. Browne also cautions new buyers to make certain their debtto-income ratio allows them to afford the kind of home they want. His advice is to figure out what the total monthly expenses will be in the new home before you buy it to make sure you aren't overextending yourself. FIVE STEPS TO TAKE BEFORE BUYING A HOME According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Sonia Fears, a Wells Fargo home mortgage consultant, there are five basic steps potential homeowners should take when preparing to buy a home. Attend home buying seminars. "These are generally published in newspapers and are put on by real estate agents, lending companies, and inspectors--all people who provide a level of expertise," says Fears. You'll pick up information at these seminars that will help you make important decisions, including how to check the condition of a home and how to approach lenders for financing. Dunagan recommends Fannie Mae's Website as a home buying resource. It contains free information on everything from surviving the mortgage process to repairing your credit. He says many of his clients have gained much-needed insight into the home buying process from the site. Cheek your credit. Fears says the next step is to obtain your credit profile. "Myfico.com is a good resource for getting your credit score and finding out if you have anything--like a lien--that could have a negative effect on your credit," she explains. She also recommends not having a debt-to-income ratio higher than 41%. Find the right lender for yon. Search for a mortgage broker or banking institution that will offer the best interest rate and loan terms for your specific financial situation. The goal is to make lenders compete for your business. If you can get pre-qualified for a loan before you find a property, it will help you discover how much home you can really afford. Choose a real estate agent. Interview several real estate agents to find one you're comfortable with. But, Fears says you should never sign a contract with a real estate agent because it might result in you owing them money, even if you don't Even If You Don't is a single released by the band Ween in 2000 on Mushroom Records. Formats Enhanced CD single Includes the quicktime video of "Even If You Don't" directed by Matt Stone & Trey Parker of "South Park". buy from them. Obtain an inspector and a real estate attorney. Once you've found an agent, he or she will usually refer you to home inspectors and real estate attorneys. "You can go online to look for an attorney as well," says Fears. "However, states differ on whether an attorney is needed. In New York, the buyer and seller both have an attorney. In Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , an attorney is only needed to represent the lender. In California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , a title or escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. company handles the transaction. It's a good idea to [do your] research because an informed consumer gets the best deal." When homeowner Earl Majette bought his first home in 1999, he educated himself on the process, and got preapproved for a loan, but he was still dissatisfied dis·sat·is·fied adj. Feeling or exhibiting a lack of contentment or satisfaction. dis·sat  is·fied with the type of home his money could buy.
"I got preapproved but I went all over the county looking for a
house. I knew I wanted to be in Bergen County, [New Jersey,] near my
family in New York but I couldn't find anything I liked in the
[price] range the bank gave me," he recalls. He went back to the
bank, explained his dilemma, and got surprising results: "I was
able to get approved for more money! As a bank vice president, I made a
pretty good income. The first time I was given preapproval, my bonus was
not considered part of my salary. When I returned, I asked them to
include my bonus and they did."Majette purchased a two-family home in Palisades Park, New Jersey
Palisades Park is a borough in Bergen County, New Jersey, United States. As of the United States 2000 Census, the borough population was 17,073. , with a paying tenant already in the second unit of the home. Five years later, his property value has risen to $450,000 from $240,000. Majette has no immediate plans to sell but says he learned some valuable lessons as a first-time home buyer that help him continue to build wealth today. "I realized early not to be in a hurry to fix up my home. When I bought this house, it was a 30-year investment and I didn't want to feel financially strained by rushing to put a lot of money into it," he says. In addition, Majette says having a rental property nicely supplements his income. WEALTH NOW AND FOR THE FUTURE Both the Swaffords and the Gordons say their first home fits into their long-term plan to build wealth for their families. The Swaffords are determined to create a legacy of homeownership. "When we do get a bigger home, we can rent this one out for extra income," say Christina and Raun Swafford. "Our hope is to be able to pass a home on to our kids." Over the last three years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time property values in the Gordons's neighborhood have almost doubled. Purchasing their starter home has provided them with a base for more profitable real estate deals in the future. "We wanted a first home that would appreciate in value, and I hope we can sell it and realize a substantial profit," says Karen. "This home will definitely lay a foundation to help us do more in terms of buying in Buying in has several meanings. In the securities market it refers to a process by which the buyer of securities, whose seller fails to deliver the securities contracted for, can 'buy in' the securities from a third party with the defaulting seller to make good. the future."
HOME BUYERS ASSISTANCE PROGRAMS
PROGRAM NAME/ GEOGRAPHICAL INCOME
LOCATION RESTRICTIONS RESTRICTIONS
AmeriDream Inc. Available in None, but the price
Gaithersburg, MD most parts of of a single-family
the U.S. unit must be less
than $333,700, and
multiunit properties
must be less than
$641,650
The Genesis Available in None
Program most parts of
Austin, TX the U.S.
U.S. Department Available in None, but borrower
of Housing and most parts of must have good
Urban the U.S. credit and have
Development sufficient income to
Washington, DC cover mortgage, down
payment, and closing
costs. Borrower must
also meet sufficient
appraisal value
requirements.
Fannie Mae Available in Home loan amount
Washington, DC most parts of must be equal to or
the U.S. less than '$337,700
Freddie Mac Available in None for the
McLean, VA most parts of majority of the low
the U.S. down payment
products
The Nehemiah Available in None, but borrower
Program most parts of must purchase a
Sacramento, CA the U.S. Nehemiah
participating home,
occupy the home, and
use an eligible loan
program
NeighborWorks Available in Income limits vary
Washington, DC 48 states in according to market
the U.S.
Countrywide Branches in Criteria varies
financial most parts of according to credit
Nationwide the U.S. score, rental
branch locations history, and income
Wells Fargo Rome Branches in Criteria varies
Mortgage most parts of according to credit
Nationwide the U.S. score, rental
branch locations history, and income
PROGRAM NAME/ PHONE NUMBER/
LOCATION WEBSITE DESCRIPTION
AmeriDream Inc. 866-263-7437 Administers gift
Gaithersburg, MD www.ameridream.org funds to home
buyers purchasing
a home in the
AmeriDream Down
Payment Gift
Program
The Genesis 512-231-0270 Administers gift
Program www.thegenesisprogram.org funds to home
Austin, TX buyers so they
can purchase
eligible Genesis
properties
U.S. Department 202-708-1112 Administers a
of Housing and www.hud.gov variety of
Urban programs
targeting low-and
Development moderate-income
Washington, DC home buyers
Fannie Mae 800-732-6643 Purchases home
Washington, DC www.fanniemae.com loans from its
lending partners,
enabling them to
offer other
home loans
Freddie Mac N/A Purchases home
McLean, VA www.freddiemac.com/homeownership loans from its
lending partners,
enabling them
to offer other
home loans
The Nehemiah 877-634-3642 Administers gift
Program www.getdownpayment.com funds to buyers
Sacramento, CA purchasing a
Nehemiah
participating
home
NeighborWorks N/A Administers funds
Washington, DC www.nw.org/network/home.asp for community
building and to
help low- and
moderate-
income families
become homeowners
Countrywide 800-556-9568 Mortgage lending
financial http://mv.countrywide.com institution
Nationwide
branch locations
Wells Fargo Rome 877-937-9357 Mortgage lending
Mortgage www.wellsfargo.com/mort-gage/ institution
Nationwide
branch locations
PROGRAM NAME/ BENEFITS/TYPE OF FIRST-TIME
LOCATION ASSISTANCE HOME BUYER
AmeriDream Inc. Down payment gift is yes (not only
Gaithersburg, MD generally 2%-10% of first-time
purchase price home buyers)
The Genesis Up to $22,500 for yes (not only
Program down payment and/or first-time
Austin, TX closing costs home buyers)
U.S. Department A variety of loans yes (not only
of Housing and are available to first-time
Urban low-and moderate- home buyers)
Development income families
Washington, DC through its programs
as well as its HUD
homes
Fannie Mae Offers a variety of yes (not only
Washington, DC products for those first-time
who have been home buyers)
underserved in the
mortgage market and/
or have less than
perfect credit
Freddie Mac Offers a variety of yes (not only
McLean, VA products for those first-time
who have been home buyers)
underserved in the
mortgage market and/
or have less than
perfect credit
The Nehemiah Gives down payment yes (not only
Program and/or closing costs first-time
Sacramento, CA gifts that are 1%-6% home buyers)
of final contract
sales price or a
flat gift no greater
than 6%
NeighborWorks Gifts vary with each yes (not only
Washington, DC program. The program first-time
offers "full-cycle home buyers)
lending" home
education before
buying the home, as
maintaining the home
to prevent
defaulting.
Countrywide Low and no down yes (not only
financial payment loans first-time
Nationwide 80/20 program that home buyers)
branch locations including the gives
cover 100% of the
cost of home (under
$500,000)
Wells Fargo Rome Low and no down yes (not only
Mortgage payment loans first-time
Nationwide No Money Down Plus home buyers)
branch locations No Money Down Plus
program, ideal for
home buyers who have
excellent credit,
but little savings
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