Financial independence: you don’t have to do it alone!

How the right loan program can help you achieve financial independence

moneyhouse (2)A brand-new home is one of the most exciting purchases you’ll ever make. Knowing that a space is truly yours is one of the most gratifying part of achieving financial independence – but you don’t go into buying your first home alone.

We’re not talking about your spouse or family. Nope, we’re talking about loans.

In preparation for celebrating Independence Day, we’ll show you how having a bit of help during the home buying process can make you more financially independent.

Aren’t loans inherently bad?

Many of us have been brought up to view loans and debt as things to avoid – but a manageable loan that you take on as a responsible adult can actually help you out in the long run.

You might think that you’re too stressed for cash to do anything but rent for now, but we like to put it this way: you’re always paying someone’s mortgage. You choose whether it’s your landlord’s or your own.

Bonus: regular, timely loan payments can boost your credit over time and build equity for your future.

ks95874Different types of loans available to homebuyers

Knowing what your options are is half the battle – and a little bit of information can save you a lot of money over time.

  • FHA (Federal Housing Administration) government loan – 3.5% down payment; the easiest loan for most buyers to get, as it’s not as credit-sensitive and allows for higher debt-to-income ratios. In addition there are HUD184 loans for Native Americans that have excellent advantages and many tribes have down payment assistance for their members. Bond money is also available for first time home buyers. So, there is the possibility of getting into an FHA loan without 3.5% down.
  • VA (Veterans Administration) government loan – No down payment required; active or retired military eligible as well as some reservists. Less than 10% of veterans have VA loans – mostly because they weren’t aware they were available.

  • Conventional non-government loan – at least 5% down payment; no monthly mortgage insurance with 20% down payment; more credit-sensitive

Every financial situation is different, but we generally recommend getting your credit score into a healthy range and then going forward with the best loan you can get. For the best results, we recommend consulting with one of our participating lenders so that you get all of your bases covered.

The more knowledge you have, the more independent you can become. Talk with one of our participating lenders or sign up for our upcoming free new home buyer seminar to learn more about how you can borrow strategically to achieve financial independence.