Buying a home is a big step — and an exciting one. According to the National Association of Realtors, first-time homebuyers make up 32% of all homebuyers in the market today. If you, friends, or family are looking to buy a first or next home but are worried about your down payment or aren’t sure if you’ll qualify for a mortgage, yourFirst Mortgage℠ from Wells Fargo could put that homebuying goal within reach. And even if you’re not a first-time homebuyer, the following benefits may be available to you:
- Low down payment and out-of-pocket costs. Get a conventional fixed-rate mortgage with as little as 3% down; and down payments and closing costs can come from your own savings, monetary gifts, or down payment assistance programs.
- Flexible income and credit guidelines. Qualify with income from rentals or the income of others who will be living with you but aren’t borrowers, such as relatives or renters. Show your credit history from a credit report or from nontraditional sources like rent, tuition, or utility bill payments. Qualify with no area median income requirements.
- A unique opportunity for informed homebuyers. Being an informed buyer puts you in the best position possible. When you complete an approved homebuyer education course and your down payment is between 3% and less than 5%, you’re eligible to receive a closing cost credit. Talk with a home consultant about loan amount, type of loan, and property type requirements to ensure eligibility.
Keep in mind that with a low down payment, mortgage insurance will be required which increases the cost of the loan and will increase your monthly payment. Your home mortgage specialist will explain the options available, so you can choose what works for you.