I get this a lot – and it’s a great question. One of the well-known facts in the industry are that there are special programs for first time buyers to encourage home buying. This is really one of my specialty areas – I have always done a lot with first time buyers and I consider myself an expert in the programs offered and the extra time and detail needed to properly explain EVERYTHING there is to know about buying a home. To answer the question – yes – there are many first time buyer programs available and Leader Bank has a great variety to offer.

I would say there are at least 10 programs that we offer designed specifically for first time buyers and maybe more. One quick point to note – “first time buyer” can be misleading – some of the programs we offer for first time buyers might mean no home ownership in the past 3 years but other programs state that you just must not currently own any homes at all and the most relaxed program allows a first time buyer to buy EVEN if they currently own a home as long as they are going to occupy the new home!

What are the benefits of these programs? Many. Low down payment for one. We have 0% down or 3% down programs. Reduced or NO PMI is the next benefit (PMI means Private mortgage insurance usually required for people with less than 20% down payment).

Many of the programs have income restrictions – so that you cannot participate if you make over a certain income and it is sometimes tiered by town – but not always. Some of the best programs have certain sections of every town whereby they are willing to waive the income restriction if you purchase in that particular section of town and almost all towns have some areas.

Because of the number of different programs, all with different guidelines and restrictions it is crucial to work with somebody who knows the ins and outs and can place you in the right program. Working with the wrong person, who is unfamiliar with a particular product that is available, might cost you quite a bit of money in higher rate or higher down payment or increased PMI over a long period of time. There are so many great programs and they all vary so much that it is crucial the loan officer or lender stay up to date and knowledgeable through continued trainings so that they can steer the borrower in the right direction to allow them to obtain the best program for their needs.