First-Time Homebuyer 101

Saving for your down payment is an essential part of the home buying process. Your down payment can be between 3 – 5% of your purchase price when using Diamond’s down payment assistance program. To avoid paying private mortgage insurance, your down payment would need to be at least 20%. Additionally, your down payment does not include closing costs and other fees.

We know costs can add up quickly, which is why we have two down payment assistance programs for homebuyers.

Home Possible* and HomeOne Mortgage Programs Available Through Freddie Mac:

Home Possible

• 3% minimum down payment
• Income-based eligibility
• Better rates for excellent credit
• Lower private mortgage insurance premiums
• Do not need to be a first-time homebuyer

HomeOne

• 3% minimum down payment
• No income limit
• Standard rates and Private Mortgage Insurance, but some enhanced benefits for certain income levels
• Do not need to be a first-time homebuyer

First Front Door Program**

The First Front Door Program is a grant program administered and controlled by the Federal Home Loan Bank (FHLB). Qualifying members can apply to this program with a maximum grant of up to $15,000 per transaction. This program is only available while grant funds last. Check with a Diamond Mortgage Expert to see if funds are still available for this calendar year.

Neighborhood Housing Services***

Neighborhood Housing Services (NHS) offers loans to cover closing costs and down payments for low-income families that are first-time homebuyers and are using a conventional loan to purchase a home.

• Must be a first-time homebuyer
• Loan terms from 7 to 10 years
• Income-based eligability
• Minimum credit score of 620
• Must be a Pennsylvania resident

1. Get pre-qualified: Provide Diamond’s Mortgage Originator with paystubs, W-2s, and any other requested information.
2. Start house hunting: Now that you know how much you are pre-qualified for, you can go house hunting with confidence. You’ll likely want to work with a Realtor to start the search. Ask about Diamond’s preferred realtors if you don’t already have one in mind.
3. Make an offer: This is it! You found the house you really want. Now your realtor will help you put in an offer. Don’t be discouraged if you don’t get the first house you make an offer on. It’s just part of the process, and often the second house you “love” is actually better than the first one.
4. Sign the contract: Once your offer is accepted, you’ll sign a sales agreement, and your closing date will typically occur within 60 days of the agreement being received.
5. Complete these essential parts of the process: Home appraisal and inspection, provide updated income documentation, shop for homeowners insurance, and consider purchasing life insurance.
6. Move into your new home

Buying your first home is a big deal, and we’re here to help.

Mortgage rates and what impacts them can be a tricky topic. In this episode of Millennials on the Move, Gabby and Anthony will walk you through what factors influence mortgage rates.

Millennials on the Move Episode 1: The Homebuying Process

Millennials on the Move Episode 2: Down Payments and Closing Costs

Millennials on the Move Episode 3: Pre-Qualification vs. Pre-Approval

Millennials on the Move Episode 4: Why Mortgage Rates Won’t Go Down

Millennials on the Move Episode 5: FHA Loans vs. Conventional Loans

Start with a Financial Check-In

If you’re not sure if you’re financially ready to buy a house, a Diamond representative can go over your credit history with you. Once you understand your credit standing, you’ll know if you should concentrate on paying down debt, resolving issues found in your credit history, or simply keeping your score in good health.

Managing Your Savings

We can set up sub-savings accounts for your various budgeting needs, including a house fund and an emergency fund. Then, you can set up automatic transfers to move money at regular intervals directly into your savings. You’ll be able to keep track of your savings through Alerts, NetBranch Online Banking, and the Diamond Mobile App.