How to Get a Home Loan as a First Time Buyer

With a first time buyer home loan, you can get a great deal. There are many programs and lenders out there to help you get the help you need. If you've never purchased a house before, you have an advantage because the mortgage market wants to get you involved and is willing to throw many incentives at you to get you in the door. Buying your first home is a prestigious event that should get you excited. Starting a home with your family is a big part of the American dream. Here are a few things to keep in mind when trying to get your first mortgage. 

FHA First Time Home Buyer

Through a government program called the FHA, first time home buyers can get a great loan. The FHA is part of the Housing and Urban Development program also known as HUD. With FHA on your side, you can get access to a number of different products. One of the most intriguing things about going with an FHA loan is that you can get a mortgage that require a very small down payment. For example, you may be able to get a mortgage that will fund 96.5% of the cost of the home. Therefore, you would only have to come up with 3.5% of the balance. This enables many people who would otherwise not be able to afford it, to get in their first home. 

With FHA loan programs, you can also obtain a lower than average interest rate in some cases. When you can save a few points in interest, it will pay big dividends down the road. It might not seem like much, but over the course of 30 years, you're talking about a lot of money. Another advantage of FHA first time home buyer loans is that you can qualify even if you don't have perfect credit. The credit standards that they use to qualify buyers, are less stringent than those held by traditional mortgage lenders. This opens the door for a wide range of people from every walk of life. 

Down Payment Assistance

In addition to using a first time home buyer program for your mortgage, you might be able to get even more help. Depending on your current financial situation, you may qualify for down payment assistance on your first house. There are a number of different programs out there that will give you the money you need for a down payment on the house.

Although your down payment might only be 3.5%, it still could be more than you can afford. With down payment assistance, this is no longer an issue. Some of the programs do not even require you to pay the money back. They are considered down payment gifts and are yours to keep. If you can find a program that offers this, you will be easily able to get into your first home, without problems.