Buying a house is one of the biggest financial decisions that you’ll ever make in your life. Now, we understand that this can all be quite daunting and overwhelming, especially if you’re looking to buy your first home. While the entire ordeal can be quite stressful at times, it’s an ultimately rewarding experience in the end.

Considering that Sacramento has been forecasted to be no.1 when it comes to housing market growth in 2021, now is a better time than ever to plan to buy a house. This should be good news for first-time homebuyers in Roseville, Sacramento. We understand that many of you might be a little hesitant to do this, but we believe that a lot of your hesitations stem from misconceptions that you have over the home buying process.

To help you out, we’ve prepared a list of three common misconceptions that people have about buying houses. Hopefully, this list will help clear things up so that you can make a more informed decision when it comes to buying a home:

Common Misconceptions About Buying a House

1. Only People with Great Credit Scores Can Get a Home Loan. While your credit score is one aspect that lenders look at when evaluating your eligibility for a loan, there are other factors that play into this as well. Both your income and work history are taken into consideration when you apply for a loan. This means you still have a shot at getting approved for a home loan as long as you have a stable and reliable source of income. Lastly,  lenders will also take a look at your debt-to-asset ratio, so be sure to settle any outstanding debts you may have before applying for a home loan. If you’re looking for a loan, we here at Steelman Mortgages can help you choose the right type of loan. This is especially true if you’re a first-time homebuyer in the Sacramento, Roseville area. We can help you determine the best deals depending on your income, ability to make a down payment and the type of home that you’re looking for!
2. You Need to Pay a 20% Down Payment. Most  people think that you will always need to pay a 20% down payment to purchase a home. While this used to be the case, this just isn’t applicable in a modern setting. There are now quite a few options when it comes to paying down payments for a house. This is especially true for first-time homebuyers, as they are afforded a little more flexibility when it comes to making down payments.
3. You Shouldn’t Buy a House in a Seller’s Market. A seller’s market is when the demand for a good or service exceeds the supply. What this means is that buyers have to keep up with the high prices since the supply is low. Now, you may think that you shouldn’t be buying a house in a seller’s market, but this just isn’t the case. While the prices may be higher, this shouldn’t be the only factor that you consider when buying a home. You also have to look at the entire picture. If the prices for homes are higher, but the mortgage rates are lower, it would make sense to take advantage of this situation. The last thing you want is to miss out on an opportunity just because the price seems initially unfavorable!

Homebuying With Steelman Mortgages

While the entire process can be quite serious and daunting, we hope that we’ve shed some light on the subject so that you can make the best possible when it comes to purchasing a house. Remember, the last thing you want is to miss out on what could potentially be a great opportunity just because you were misinformed!

If you’re looking for home loans in Roseville, Steelman Mortgages is your best choice. We can provide you with the best mortgage solutions that can accommodate your needs and financial situation. For more information on our services, check out our website or contact us at (916) 847-7263 today!

Buying a home can be a difficult endeavor for anyone. There’s so much paperwork and terminology and fees that it can get quite hard to understand everything. Of course, you’ll want to ensure you’re making a good financial decision.

Here are a few programs that you might be able to take advantage of to help you along:

Federal Housing Administration (FHA) Loan

This loan is the most common one for first-time buyers of homes, and for those with a poor credit score. The FHA offers a maximum of 96.5% financing with a 3.5% down payment, but you can only get that if you have a credit score of at least 580. Fret not, however, as if you have a FICO score of at least 500, you can put down at least 10% and still get financing. They offer this because the FHA guarantees a portion of the home loan, meaning the lenders have less risk. In turn, that allows them to accept more people.

However, there’s a catch: FHA loans have both upfront and ongoing costs in the form of mortgage insurance premiums.

Department of Veteran Affairs (VA) Loan

The Department of Veteran Affairs provides low-interest mortgages for members of the U.S. military (active and veteran) and their families. These loans do not need a down payment or private mortgage insurance (PMI). There is a funding fee that costs a percentage of the total loan amount and it goes on top of your new mortgage.

U.S. Department of Agriculture

USDA loans are designed to help financially struggling members of society get homes in rural areas. To qualify, you must get a home in a USDA-eligible area and meet certain income limits (which vary by region). Certain loans may be 100% financed with no down payment.

Fannie Mae and Freddie Mac

Fannie Mae and Freddie Mac are government-sanctioned companies that work with local mortgage lenders to offer cheaper, better loans. This can include a 3% down payment on your loan for first time homebuyers. 

Good Neighbor Next Door

Originally called the Teacher Next Door Program, it was expanded to include law enforcement, firefighters, and emergency medical technicians. It is sponsored by the Department of Housing and Urban Development (HUD) and gives up to a 50% discount on the prices of homes located in revitalization areas. The catch is that you have to commit to living in the area for the next 36 months.

Buying a Home in Roseville: Steelman Mortgages

There are several programs and loans that first-time home buyers can look into. This includes the FHA loan, the VA loan, and the conventional loan. Consider reaching out to a reputable mortgage refinance company in Roseville to help you determine what’s best.

Looking for a mortgage lender in Roseville? Contact Steelman Mortgages at (916) 847-7263! We can’t wait to help you, whether you’re a first-time home buyer or someone looking into reverse mortgage and other similar needs.

A home purchase can be one of the most fulfilling decisions you’ll ever make in your life, as a house is a significant investment. However, one of the biggest challenges you’ll encounter is when you don’t have enough finances to pay for this endeavor. If you don’t have money to pay for a new house in full, the most logical course of action is to get financing from a lending institution. This is where a mortgage comes into the picture.

A mortgage allows you to buy a house by seeking funding from a bank, financial institution, or a lender. It is a security instrument, wherein you’re obliged to pay regularly until your loan is paid back in full.

Buy a Home Tips in Roseville, CA

In this article, we will share two common types of mortgages that you can choose from:

1. Conventional loans. These mortgages are generally offered by private lenders, such as banks and other financial institutions, meaning that the federal government doesn’t insure them. Taking this option is ideal for borrowers with a good credit standing, stable employment or business, stable income, and minimal to zero debts. There are two types of loans that fall under this category, as follows:
   
   • Conforming loan: As the name suggests, this loan conforms to financing limits set forth by the Federal Housing Finance Agency (FHFA). It is usually regulated by Fannie Mae and Freddie Mac, two agencies that typically buy most US mortgages for their portfolio as investors.
   • Non-conforming loan: This loan operates above the conforming loan limits. The terms and conditions for this vary from one lender to another, but the mortgage rate is typically higher for the lender’s security. The most common type of non-conforming loan is the jumbo loan.
2. Non-conventional loans These mortgages are typically insured or backed by the government. However, keep in mind that the US government isn’t a mortgage lender, as it is only their way of helping Americans become homeowners. These loan types are ideal for those with lower income or less-than-perfect credit because they offer more flexibility in their loan features. Below are the three types that fall under this category:
   
   • FHA loans: The Federal Housing Administration loans are usually back by the government agency. This is perfect for borrowers who don’t have enough down payment or don’t have a good credit standing. Its down payment typically ranges from three to ten percent, while the credit score required is 500 and above.
   • VA loans: These loans are insured by the Veteran’s Administration (VA). They are programs designed for active-duty military members, reservists, and veterans to help them and their families finance a home. The good thing about these loans is that they require no down payment and mortgage insurance, but the credit score must be around 620 to qualify.
   • USDA loans: USDA loans are backed by the United States Department of Agriculture, meant to help low-to-moderate income borrowers and develop rural communities. To qualify for this, you must purchase a home in a USDA-eligible area, meet certain income limits, and have a credit score higher than 620. As with VA loans, they require no down payment, although mortgage insurance is included.

Mortgage Broker in Roseville: Steelman Mortgages

A mortgage is indeed a viable solution when you want to buy and own a house in the future. Be sure to consider the common types of home loans discussed above, whether it’s conventional or non-conventional. Factor in all the loan features, weigh in your options, and then decide on a mortgage that best fits your circumstance. With all these in mind, you’ll be able to make a well-informed home purchase decision!

Are you looking for the right mortgage? You’ve come to the right place! As a mortgage broker in Roseville, we help individuals find the right home loan, whether buying a new house or refinancing a mortgage. Get in touch with us today at (916) 847-7263 to schedule an appointment with our loan officers!