Many mortgage lenders make offers for first-time home owner loan programs or first responder programs. However, they embellish what those mortgage loans really are. For example, one mortgage lender promotes that nurses, first responders or veterans can get loans with zero fees.

The reality is, the lender charges a higher interest rate to compensate for the fees. So, the borrowers are not getting a deal and it’s really a shell game. At Indigo Mortgage, we believe lenders should just be honest about what they’re doing. Lenders should give borrowers all the information and options and let them decide which is best.

First-time home buyer programs in Albuquerque are just intended to help with a mortgage down payment. For example, some lenders might recommend a loan with zero down or only five-hundred dollars down, in which the lender can do a first mortgage with an FHA loan. Then they recommend a second mortgage through the New Mexico Mortgage Finance Authority (which is a government program) to cover the down payment and cover closing costs.

However, this option may have a higher down payment than if the borrower used their own funds. At Indigo Mortgage, we offer many first-time home buyer programs which allow the borrower to put down as little as three percent. First-time home buyer programs do not offer better rates but allow concessions in the down payment and in closing costs. Our Albuquerque Mortgage company will help you find the best home loan for your situation.