First-Time Homebuyer? Learn About Your Loan Options!


When you’re a first-time homebuyer, you’re looking to get your foot in the door. Maybe that means a loan with a lower down payment or one with a less stringent credit score or income standards. Whatever your unique situation calls for, there’s a first-time home buyer loan that can help! Let’s take a look at some of the available options below.

FHA Loan Program A loan insured by the Federal Housing Administration. This type of loan is ideal for those with average credit scores and a smaller amount of money saved for a down payment.

  • An FHA loan has a lower down payment of 3.5% and is easier to qualify for than a conventional loan.
  • All FHA borrowers must pay a mortgage insurance premium (MIP), which is rolled into their mortgage payments.

VA Loan Program – A loan backed by the U.S. Department of Veterans Affairs that allows no down payment for military personnel, veterans, and their families.

  • VA loans are easier to qualify for than conventional loans. Loans are guaranteed mortgages made by qualified lenders. 
  • Generally, this loan does not require a down payment.

Good Neighbor Next Door Buyer Aid Program – A U.S. Department of Housing and Urban Development (HUD) program that provides housing aid for law enforcement officers, firefighters, emergency medical technicians, and teachers.

  • Qualified participants can receive a 50% discount on a home’s listed price in “revitalization areas.”
  • You must commit to living in the home for three years.

Fannie Mae or Freddie Mac Loan Program – Conventional loans backed by Fannie Mae or Freddie Mac that require just 3% down payment. This type of loan is ideal for those with good credit scores.

  • These government-sponsored enterprises, or GSEs, set borrowing guidelines for loans they’re willing to buy from conventional lenders on the secondary mortgage market.
  • A PMI is required if putting less than 20 percent down.

Now that you know the types of loans available for first-time home buyers, you can choose an option that works for you! Enlisting the help of a well-trusted REALTOR® is crucial when making your decision. Let’s talk today!