![]() How do I qualify as a first-time home buyer? So it could also be a great idea to research the options offered by some of the best mortgage lenders as well as your local and regional financial institutions.Ĭompare lenders: Best USDA Mortgage Lendersįor more information on choosing the best mortgage for you, watch the video below. It's also important to mention that in addition to these types of loans, many lenders have their own proprietary mortgage products, and some are specifically designed for first-time home buyers. If both borrower and property qualify, USDA loans don't require any down payment whatsoever. To qualify, a home must be in an eligible rural area, and the borrower's income must be below certain limits. ![]() VA loans have no down payment requirement, low interest rates, and flexible credit qualifications, so they are definitely worth looking into if you qualify.Ĭompare rates: Today's VA Loan Rates USDA loansĪ USDA loan is a mortgage that is guaranteed by the U.S. Department of Veterans Affairs, and these are available to certain military members, both past and present. While there are a few drawbacks to FHA loans, especially when it comes to costs, they can be a great way for buyers who don't have stellar qualifications to become homeowners.Ĭompare rates: Today's FHA Mortgage Rates VA loansĪ VA loan is a mortgage that is backed by the U.S. Because of this guarantee, credit requirements are generally looser than other types of mortgages, and down payments can be as low as 3.5%, even with a relatively low credit score. FHA loansįHA mortgage loans are guaranteed, or insured, by the Federal Housing Administration (FHA). ![]() Find out more in our guide to buying your first home. There are several conventional mortgage programs for first-time buyers that allow for down payments as low as 3% of the purchase price. But they could still be excellent options for first-time buyers with strong credit scores. The lack of a guarantee means that conventional mortgages generally have stricter qualification requirements than the other loan types listed here. This is a broad term that refers to loans that aren't guaranteed by a government agency. The majority of purchase mortgage loans in the United States are known as conventional loans. With that in mind, here's a quick overview of the four major mortgage types first-time home buyers can use. Some have served in the Armed Forces and can access VA loans, while others might be able to explore USDA financing if their homes are in certain rural areas. Many first-time home buyers don't have excellent credit histories, and many others don't have large down payments available. What types of loans are available for first-time home buyers?
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