How would it feel to buy your first home with little or no down payment? There are many loan options available for first-time home buyers and they result in big savings. Let's take a look at your mortgage options.
- FHA Loan
- VA Loan
- USDA Loan Assistance
- Fannie Mae
- Freddie Mac
- Good Neighbor Next Door Program
If your credit is low and you want to buy a home, you could take advantage of a FHA loan (Federal Housing Administration). If you qualify for a FHA-backed loan, your down payment will be as low as 3.5%. Be aware, these loans require PMI which is an additional expense.
If you are in the military, a veteran or a surviving spouse, you can qualify for a VA loan. Offered by the U.S. Department of Veterans Affair, the majority of borrowers do not pay a down payment on the loan. PMI is not required but there may be additional requirements.
A USDA (U.S. Department of Agriculture) loan assistance program is an option for low- to moderate-income first-time home buyers. If you wish to buy in an eligible rural area (doesn't have to be a farm), you can get up to 100% financing but income limitations exist. Credit requirements are flexible.
If you're in law enforcement, a firefighter, EMT, or teacher, you could qualify for the Good Neighbor Next Door program. This HUD-sponsored program allows up to 50% off homes in revitalization areas. See what homes are listed in your area by visiting their website.
As you can see, there are many options for financing your first home, many with little or no down payment. Reach out to your mortgage lender today to see which first-time homeowner loan you qualify for. If you need advice from a real estate agent, please let us know. Before you know it, you could be in your first home!