Mortgage Options for First-Time Home Buyers in Milpitas, CA

If you’re one of the many first-time home buyers in Milpitas, you’re probably looking for the best mortgage option.

Well, we’ve got some answers! This post will cover some of the mortgage options for homebuyers in Milpitas.

4 Mortgage Options for First-Time Home Buyers in Milpitas, CA

1. FHA Loans

FHA loans are the best option for those with lower credit scores and down payments. The FHA allows borrowers with a credit score of 580 or higher to get a loan with down payments as low as 3.5%.

Borrowers with scores of 500 and below can also get an FHA loan, but they’ll need to make a 10% down payment.

FHA loans require mortgage insurance for the life of the loan. You can only cancel the insurance if you refinance to a different type of mortgage.

2. Conventional Mortgages

Conventional mortgages are the most common and widely available type of home loan. They are not guaranteed or insured by the federal government and have higher interest rates than government-backed loans. But that doesn’t mean they’re not great. Some conventional mortgages allow down payments as low as 3%. It is especially true for conventional mortgages that conform with Fannie Mae and Freddie Mac.

3. VA Loans

If you are a veteran or the spouse of a veteran, you might be eligible for a VA loan. These loans have very generous terms and conditions, which make them a good option for first-time home buyers. They generally have lower interest rates than other loans and don’t always require a downpayment.

4. Other Programs

First-time homebuyers in California can take advantage of many other loan options.

CalHFA promotes affordable housing by providing financing and home loan programs that create safe, decent homes. These include the following:

MyHome Assistance Program

This program helps low-income applicants buy homes by providing deferred-payment subordinate loans. These loans allow you to use funds for your down payment and closing costs without paying them back immediately.

CalHFA Zero Interest Program

If you qualify for a CalPLUS Conventional or CalPLUS FHA loan, it can make your mortgage even more affordable. You can receive up to 3% of the total loan amount as a no-interest second loan.

You can defer payments as long as you live in the home but must pay them back in full once you sell or refinance.

The Bottom Line

We hope this guide helped you understand all the different types of mortgages available to first-time home buyers in Milpitas.

If you’re looking for a home in Milpitas and need some help, we are here to help. Call us at +1 855-644-5626 or send us a message through our contact page. We’re happy to chat with you, whether over the phone or in person!

Thanks for visiting!