Dreaming of buying your first home and settling down in the charming community of Delafield, WI? The good news is, even if you're unsure about qualifying as a first-time homebuyer according to traditional mortgage definitions, there are programs available to help you achieve your dream.

The mortgage industry's definition might surprise you. You're considered a first-time homebuyer if you haven't owned a property in the past three years, with some exceptions (land without a residence or a mobile home without owning the land).

• Lower Down Payment: FHA loans and certain conventional programs require as little as 3% down on your Delafield home.
• Reduced Mortgage Insurance: These programs can also qualify you for lower private mortgage insurance (PMI) costs.
• Competitive Interest Rates: First-time homebuyer programs often offer attractive rates, saving you money over the life of your loan.
• Income-based programs can assist repeat buyers who fall within a certain income range, so don't be discouraged if you've owned a home before.

Step 1: Craft Your Budget

Before diving into mortgages, determine your comfortable monthly housing payment for a Delafield home. Consider your income, debt, and desired down payment. This will influence your loan options and the type of home you can realistically afford.

Step 2: Explore Loan Options Tailored for You

• FHA Loans: Lower down payment (3.5%) and flexible credit score requirements, making them a good option for many first-time buyers.
• USDA Loans (for eligible rural areas surrounding Delafield): No down payment required, perfect for qualifying properties outside the main Delafield area. Be sure to check the USDA eligibility map.
• WHEDA Programs: The Wisconsin Housing and Economic Development Authority offers various programs with reduced interest rates and down payment assistance for Delafield homebuyers.
• VA Loans for Veterans: No down payment, competitive interest rates, and no PMI for qualified veterans looking to buy in Delafield.

Step 3: Get Pre-Approved for Your Dream Home

Pre-approval strengthens your offer and showcases your seriousness to real estate agents in Delafield. A lender will assess your finances and provide a pre-approval letter stating the maximum loan amount you qualify for.

Step 4: Down Payment Strategies

The size of your down payment impacts your loan options and monthly payment. While some programs allow for 0% down (USDA loans), a larger down payment can:

• Reduce your loan amount
• Lower your interest rate
• Eliminate PMI, saving you money each month

Step 5: Closing the Deal on Your Delafield Haven

Once you've found your perfect home in Delafield and your offer is accepted, it's time for closing! During closing, you'll finalize the loan paperwork, pay closing costs, and officially become a homeowner in Delafield.