Before you start shopping for a home, it’s important to understand all of the different first-time homebuyer programs available. These programs are designed to make purchasing a home more accessible and often come with great benefits. Depending on your location, there may be several programs to choose from. Here we will outline some of the most common options.
The Federal Housing Administration (FHA) loan is popular for first-time buyers, offering low down payments and flexible credit requirements. Buyers can put as little as 3.5% down with an FHA loan and don’t need a high credit score to qualify. Many have credit scores as low as 640 and still qualify for an FHA loan. Additionally, the FHA loan allows for a higher debt-to-income ratio than other loans.
Another popular program is the Veterans Affairs (VA) loan, available to veterans or active military members as well as some surviving spouses. The VA loan requires no down payment and offers low-interest rates and flexible credit requirements. Many lenders also require a lower credit score for VA loans than other loans, making them a great option for first-time homebuyers with a limited credit history or those who have previously struggled with their credit scores.
The U.S. Department of Agriculture (USDA) also provides a loan program for rural or suburban homebuyers. USDA loans are only available in certain areas but require no down payment and offer competitive interest rates. The eligibility requirements depend on your location, so checking with the local USDA office is important to see if you qualify.
No matter what type of loan you choose, it is important to shop around and compare rates before deciding.
By researching and understanding the different first-time homebuyer programs available, you can make an informed choice that best fits your needs.
With a passion for matching clients with their dream homes, Mary’s experience and knowledge of the real estate market make her a trusted advisor. She’s your go-to expert for buying or selling properties in the heart of the city.
