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Super-Charged Home Loans for First-Time Homebuyers

“I’m buying my first home!” That proclamation is just as exciting and impressive as it is mysterious and overwhelming. Where do you start and which loan programs are made especially for first-time homebuyers? Getting started is a lot easier than you realize. In fact, you’ve already begun! Reading this article and getting familiar with the home funding opportunities are significant first steps toward homeownership.  

Government Help Especially for First-Time Homebuyers  

You may think that as a “newbie” you’re at a disadvantage for buying a home, but in reality, you’re in an advantageous position –especially when it comes to government-funded home loans. There are several government home loan programs, each with unique options, rates, and qualifying requirements. Bookmark this article for quick reference, share it with a friend, and contact us for professional guidance on which loan is right for you!    

First-Time Home Loans At-a-Glance  

  • FHA loans: The go-to loan program, especially for weaker credit.  
  • VA loan: Zero down home loan for military personnel and their spouses.  
  • USDA loan: 100% financing in specified rural properties.  
  • Fannie and Freddie: Conventional government-backed loans with just 3% down.  
  • HUD Homes –Government-owned properties
  • Good Neighbor Next Door: Discounted home pricing for emergency responders and educators.  
  • Dollar Homes: Government-owned foreclosed homes for sale.    

Take a Closer Look at Government Home Loans.  

FHA loan

FHA home loans are a go-to program for many first-time homebuyers and those who have a credit history that’s less than ideal. Through this program, the Federal Housing Administration guarantees a portion of the loan, which means that borrowers can qualify for loans much easier with as little as 3.5% down.   However, there’s an additional built-in cost for the more lax qualifying standards.

FHA loans come with a mortgage insurance premium. It’s less than private mortgage insurance but it does last the for the life of the loan.  

VA loan

VA home loans are for current service members, veterans, and surviving spouses. VA loans are considered one of the most generous home loan options, requiring no down payment or mortgage insurance. You’ll still need to provide info on your debts and income. However, the requirements are less rigid.    

USDA loan

While funded by the U.S. Department of Agriculture, you don’t need to buy a farm to qualify for this government loan. This program allows for 100% financing for properties in specified rural areas that the government aims to “revitalize”. There are income limitations to qualify for this program in addition to property requirements.  

Fannie Mae and Freddie Mac

They may have funny-sounding names, but Fannie Mae and Freddie Mac have some serious home loan power to help first-time home shoppers. Fannie Mae and Freddie Mac work with local lenders to offer options such as 3% down on conventional loans.    

Good Neighbor Next Door

If you’re in law enforcement, a firefighter, an emergency medical technician, or educator, you may qualify for this HUD-sponsored program. It allows for up to 50% discounts on the listed home price in select areas. What makes it select? Just like USDA loans, the government offers this loan for homes located in areas they hope to “revitalize.”  

In addition to the loan-qualifying requirements, you'll need to commit to living on the property for at least 36 months.  

Dollar Homes

Buy a home for $1? That’s what HUD claims! HUD homes are properties that the government acquired after the owner defaulted on their government-backed loan. Not surprisingly, the homes that you can purchase for a $1 are very few. Shop carefully! Homes listed under the dollar program are there because they've been sitting vacant for at least 6 months. There may be serious reasons why that is.

Even More Options for First-Time Home Buyers!  

If you’re thinking about buying a fixer-upper, there are home loans for that too. And let’s not forget that there may be funding options at the local city and county level, also.    

Now that you have the gist of first-time loan options, what's the next step? Contact us! We'll match you with the home loan program that gets you the most for your money and at a rate you can afford. For the fastest response, use our contact form located on our site or give us a call!

We look forward to serving your mortgage needs.

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