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Low interest programs are ideal for the first time homebuyers who wish to purchase a home but at the same time do not have the resources to pay high interest rates. These programs were specially introduced keeping them in mind. Low interest programs are different from conventional programs and are very popular. Let us take a look at some of the features of low interest programs.

Features

Usually a low interest program has a fixed interest rate. This rate is much lower than conventional mortgage loan programs. In the low interest programs, borrowers receive up to 97% financing of the actual value of the property that they wish to purchase. Even the down payment is low in these programs for first time homebuyers. While other programs require up to 5% of the money, these programs just require up to 3% of the actual loan amount. It has long terms as well. You can select the term period and extend it up to 30 years. There are no prepayment penalties in low interest loan programs. You also get payment protection in the event of loss of the job or an accident.

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Qualifiers

However, there are certain criteria that need to be met in order to qualify for the low interest program. The borrower has to be a first time homebuyer amongst other things. He also should possess a good job and a good credit history. One major thing that is a pre requisite for any loan program is that the person must have an income that is sufficient enough to not only pay off the loan program but also meet other expenses.

Bad Credit$%:

It might not be easy at all for you to get the home loan if you have bad credit. But there are many low interest programs for people with bad credit as well. The interest rates are lower when compared to the other loan programs for people with bad credit history. These low interest programs may require you to pay a substantially large amount as down payment. This can be looked upon as a drawback but actually is a blessing in disguise. Not only does it reduce the rate of interest, but also reduces the monthly payments considerably.

Stay in Touch With Your Lender

An attorney and the lender can be your best friends during the entire term of the loan program. You need to ensure that you stay in touch with them frequently during the entire loan program. There might be documentation requirements that arise so staying in touch with them is recommended. The More iInformation You Provide, The Faster The Loan Will be Processed. Whatever information they require, you need to make sure that you provide it as fast as you can. This can speed up the processing of the loan from week to as less as a couple of days. The information needed usually includes work history information, information about the income, banking details, tax details etc.

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You Can Get The Loan Even if You Had Filed Bankruptcy

Even if you had previously filed bankruptcy, you can still get a loan in the low interest program. But the condition is that at least three years or more should have passed since the bankruptcy was discharged. You also need to have a good explanation of why you declared bankruptcy. Also a good credit history post the discharge is very essential in order for you to qualify for the loan program.

Research and Do Your Homework

You need to ensure that you do proper research and your homework in order to get the best low interest program ever. Hunt around for sometime before you sign up.