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First Time Home Buyer Program

First Time Home Buyers - young couple standing in front of their new home with keys

State Financial Network’s First Time Home Buyer Program:

  • At least one borrower must be a first-time home buyer
  • Minimum of one borrower must receive home-ownership education prior to settlement
  • Designed for eligible borrowers at or below 80% of area median income (AMI)
  • Flexible credit standards if you have a limited credit history or a less-than-perfect credit score
  • Homebuyer education is required
  • No area median income restrictions for some loan programs

For help identifying income and property eligibility, use Freddie Mac’s Home Possible® Income and Property Eligibility Tool.

Get Pre-approved

A Guide to Understanding the Process

Where do I begin?

Common questions include:

  • What amount am I comfortable paying each month?
  • How much money do I have for a down payment?
  • How much money do I want in reserve after purchasing my home?

A crucial step in qualifying for a mortgage is to be pre-approved. State Financial Network, your trusted financial resource, is here to work side-by-side with you to complete your home buying journey. Let us teach, guide and smooth out your path to home ownership.

What does pre-approval mean?

We review your credit history and income. With this information, we can provide a solid idea of the loan amount you qualify for, making it easier to choose the perfect home. What do I need to obtain a mortgage pre-approval?

  • 30 days of paystubs
  • 2 years of W-2’s
  • Bank statements
  • 2 years of tax returns, if self-employed

During the process, one of State Financial Network’s Loan Officers will obtain your credit report, and process your application through an automated underwriting system.  Together, you will decide the best loan program for you. Your pre-approval includes a purchase price and loan amount. When you choose a home your real estate agent can include your pre-approval with your offer to buy the home.

Get Pre-approved

Try our Mortgage Qualifier Calculator before you go through the pre-approval process.  This calculator helps provide you approximately how much you can borrow.

Credit Bureau Report and Credit Score

A credit report and credit score provide information on credit use in the past, including whether bills are paid on time. There are three credit reporting agencies in the United States: Experian, Equifax, and Transunion. Each of these credit reporting agencies compiles credit information from various reporting sources into a credit report. When a borrower applies for credit lenders normally review a credit report to help make a lending decisions and to determine interest rates and lending terms. A credit score is a number that helps lenders predict how likely a person is to pay back the money they borrow. A credit report is updated frequently, as new information is reported by lenders and older information is gradually removed per federal retention requirements. However, it’s important to also know that most lenders report changes in account status, such as payments on a monthly basis. If you make a payment on an accounts, it’s possible that the payment won’t appear on a credit report for up to 30 days. Recommendations:

Down Payment intro

We can help you realize the milestone of homeownership faster without the barrier of a 20% down payment. Saving a 20% down payment to get a mortgage is daunting – and it’s a myth that you need this much cash to buy a home. A range of low-down-payment mortgages and down payment assistance programs can unlock homeownership for people who lack substantial savings but can afford monthly house payments. Down payments can be as low as 3%. No minimum funds are required from buyer. The down payment can be from a gift or other eligible sources. With a low down payment, mortgage insurance will be required, which increases the cost of the loan and will increase your monthly payment.

Additional Information

This Freddie Mac Step-by-Step Mortgage Guide leads you on the path to home ownership from application to closing. Pull the curtain back and learn the steps to take for home ownership.