Looking to buy your first home in Whitefish Bay, Wisconsin? It is always worth wondering if there are any first-time home buyers' programs out there to help you. The answer: yes, there are! Say you are unsure whether you fall under the category of a first-time home buyer—there are still programs to help make it more affordable for you to become a homeowner.

When it comes to mortgages, it doesn't mean what you think it means. You are considered a first-time home buyer for mortgage purposes if you haven't owned a residential property in three years. There are some exceptions. For example, if you once owned a piece of land with no residence on it or a mobile home without owning the land the mobile home sat on, you could still be considered a first-time home buyer.

Now, the definition of first-time home buyer might be a bit surprising, but there are still advantages to falling under that classification. Here are some of them:

• Lower Down Payment: Put down as little as 3% on your first home with FHA loans and conventional HomeReady or Home Possible programs.
• Lower Mortgage Insurance: This can help you qualify for lower private mortgage insurance (PMI) costs with these programs.
• Competitive Interest Rates: First-time home buyer programs often have attractive interest rates that can save you money over the life of your loan.

Congratulations! You've made the decision to pursue the American dream of homeownership right here in Whitefish Bay, Wisconsin. If you are a first-time home buyer, getting a mortgage can be pretty intimidating. But fear not! The following first-time home buyer guide will help break down the process to finance your first Whitefish Bay home.

Step 1: Determine Your Budget Before examining mortgages, identify your comfortable monthly housing payment. Consider income, debt, and preferred down payment. This first step will guide your loan options and influence the type of home you can realistically afford in Whitefish Bay.

Step 2: Loan Programs for First-Time Buyers in Whitefish Bay These loan programs have been designed for first-time home buyers in Whitefish Bay:

• FHA Loans: These are loans insured by the Federal Housing Administration. They offer a lower minimum down payment, as low as 3.5% of the purchase price, and are a bit more flexible with credit underwriting.
• USDA Loans: This is a loan program offered to first-time home buyers in qualifying, rural-eligible areas. The U.S. Department of Agriculture requires zero down payment, making it a great offer to home buyers in surrounding Whitefish Bay-qualifying areas. Be sure to check out the USDA eligibility map to see if the property you wish to purchase is eligible.
• WHEDA Programs: The Wisconsin Housing and Economic Development Authority hosts a few different loan programs for first-time homebuyers, including the WHEDA Advantage FHA Loan and WHEDA Advantage Conventional Loan. What sets these programs apart is the reduced interest rates and down payment assistance available to those who qualify for the programs.
• VA Loans for First-Time Homebuyers: The VA Home Loan program is a great place for a veteran to begin the business of buying a first home. Some of the unique benefits of a VA loan versus most conventional loans is there's no down payment required to purchase a home. In general, VA loans offer some of the lowest interest rates around, which will save you a great deal of money over the life of your loan. Another monthly cost is PMI, which you're required to carry on a conventional loan if you make a down payment of less than 20%. You don't need to worry about that with a VA loan, so you pocket that money every month.

Step 3: Get Pre-Approved One of the most crucial steps in purchasing a home is that of getting pre-approved, where a mortgage lender examines your overall financial situation and then issues a pre-approval letter. This letter will detail the maximum loan amount you are eligible for. This makes your offer stronger during negotiations with sellers and shows real estate agents in Whitefish Bay how serious you are.

Step 4: Gather Your Down Payment The size of your down payment impacts your loan choices and your monthly mortgage payment. Down Payments: In some programs the minimum down payment is 0% (like USDA loans), but a larger down payment may reduce the amount you are borrowing, which could lower your interest rate and also free you from the private mortgage insurance (PMI).

Step 5: Closing Once you have found your dream home and your offer is accepted, you will go to closing. At this point in closing, you will finalize all of the loan paperwork and associated fees and officially become a homeowner!