A first-time homebuyer program can help you and your family qualify for and secure a mortgage to purchase the home of your dreams. Not only can you get a first-time homebuyer credit for the purchase of your first home, but you may qualify for additional help even if you have previously owned and you are purchasing a home as your primary residence.
There are several first-time homebuyer programs to choose from. However, each of these programs serves a different purpose and has eligibility requirements you must meet to qualify. Here’s a closer look at these programs, including how they benefit you, how to qualify, and how to apply.
First-time home buyer programs are designed to help Americans get past initial hurdles preventing them from becoming homeowners. These programs can make it easier for borrowers to qualify for a loan, reduce upfront costs, and secure better loan terms. While some of these programs are only available to families that meet income-based requirements, other loan programs have different qualifications that must be met but can be obtained with higher incomes.
The best home loans for first time home buyers include:
- FHA Loans: FHA loans are a popular first-time home buyer program. With these loans, the Federal Housing Administration (FHA) works with lenders to offer mortgages to borrowers that may not otherwise qualify for a loan and help borrowers secure better loan terms and down payment requirements.
- USDA Loans: USDA loans are special first-time homebuyer programs offered by the United States Department of Agriculture (USDA). These loans help low-income Americans qualify for a mortgage to purchase a home in a rural community. Similar to FHA loans, requirements for the down payment for first-time home buyers are far lower than that of traditional mortgages.
- VA loans: First-time VA home buyer loans are available to veterans, service members, and their families that qualify. These loans can be used towards the purchase or refinance of a home while securing optimal loan terms. Additionally, most VA loans do not require borrowers to make a down payment and do not require borrowers to pay mortgage insurance premiums. Depending on the loan you qualify for, the VA may issue your loan directly or back your loan with a qualifying lender.
- State and Local Programs and Mortgage Companies for First-Time Home Buyers: Many state and local programs help borrowers qualify for a first-time home loan. These programs may reduce eligibility requirements or help with the costs of down payments or closing costs.
Since you have many first-time homebuyer options, it’s essential that you take the time to learn about the benefits, eligibility requirements, and application steps that you must take for each program. Doing so will help you find the best loan program for you and your family.