1st Time Home Buyer Program: Find Your Ideal Mortgage Loan

Purchasing your first home is an exciting and nerve-wracking time. There are many different things to consider as you begin the search for the right loan for your first mortgage, and Midland Mortgage Corporation is qualified and ready to help you get down to business. With the Midland team you can rest assured knowing that you are working with mortgage loan experts who will walk with you step-by-step as you consider your mortgage options and move through the loan application process.

Purchasing your first mortgage is a major financial milestone and we will help you to analyze the details of your situation and match up your needs with the loan you can afford. With Midland Mortgage Corporation, you can also receive pre-approval before you begin shopping for your home, which will lend more power to your bargaining ability.

As a first time home buyer, there are different types of mortgages available to you, including:

30-Year Fixed-Rate Mortgage

One of our most popular home loans, the 30-year fixed rate mortgage is straight-forward—you can know what your payment will be for thirty years. The benefit? No payment surprises and you can easily incorporate mortgage payments into your budget from the beginning and into the future. The 30-year fixed-rate mortgage loan is ideal if you:

Desire a consistent mortgage loan payment for simple budget planning.
Enjoy the predictability of a monthly payment that stays the same month-to-month, year-to-year.
Plan to live in this home for many years.

Federal Housing Administration (FHA) Loan

Insured by the Federal Housing Administration, FHA loans have less stringent qualifications and tend to be ideal for many first time home buyers. The maximum loan amount varies, depending upon the location of the home, but these loans typically have lower down payment requirements and competitive interest rates.

The FHA loan has flexible options, such as a fixed-rate mortgage or a 5-year adjustable rate mortgage (ARM), giving you the opportunity to find a loan to meet your budget needs and plan for the future. FHA loans are ideal if you:

• •Have less than good credit.
• •Do not have the 20% of the home cost for the down payment.
• •Are interested in having a loan insured by the government.

Adjustable Rate Mortgage (ARM)

With the benefit of a lower beginning interest rate in comparison to traditional fixed-rate loans, the adjustable rate mortgage fluctuates according to general interest rates. This means after the introductory lower interest rate period ends, the rate adjusts to a fully-indexed rate, which typically leads to an increase in the monthly mortgage payment.

There are different options available in ARM loans, so you have some flexibility regarding how long the initial lower interest rate will last before the adjustment. It is important to be aware of the rate changes for an ARM loan, so you can prepare financially for increased payments in the future.

    ARM loans are ideal if you:

• •Have future plans to sell your home prior to the end of the lower introductory interest rate.
• •Can determine with certainty that you will be able to afford the maximum monthly payment if the adjustment leads to a higher interest rate.