Resources to Help You Get Started

Specialized Loans First Time Homebuyers

Programs vary. Speak with a mortgage lender for details. Loans subject to credit approval.

FAQs for First Time Homebuyers

Below are some helpful frequently asked questions when buying your first home.


What is debt-to-income ratio?

Your debt-to-income ratio is the comparison of your gross income to housing as compared to your non-housing expenses. The FHA usually requires your monthly mortgage payment to be no more than 29% of your monthly gross income (before taxes) and the mortgage payment combined with non-housing debts should not exceed 41% of your income.

What is escrow?

Escrow is when mortgage payments are made to the escrow holder. The escrow holder holds the amount needed for taxes and makes the payment to the mortgage company and tax assessor.
• Required on loans above 80% LTV
• Required on all government loans

What are points?

Points (sometimes referred to as discount points or mortgage points) are paid to the lender, usually at mortgage closing, in order to lower the interest rate. One point equals one percent of the loan amount. For example, 2 points on a $100,000 mortgage equals $2,000.

What is Private Mortgage Insurance (PMI)?

An insurance policy that protects the lender against default on loans by providing a way for mortgage companies to recoup the costs of foreclosure. PMI is usually required if the down payment is less than 20 percent of the sale price.