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6 Options for First Time Home Buyer Loans

dad playing video games with sonFirst time home buyers have quite a few options when it comes to financing that first house. From no-down payment loans to fixer-upper projects, the needs of a first time buyer vary widely across the board. Depending on your needs and wants, you might have several options from which you can choose. Take a look at  options for first time home buyer loans and see what might work best for you.


  1. USDA Rural Development. With this option you can borrow 100% of the appraised value of a qualified home. This means you don't need to come up with the down payment! The main requirement for a USDA Rural Development mortgage is that the property must fall within certain geographical areas, outside the city limits of major metropolitan centers.
  2. FHA Loan. The Federal Housing Administration (FHA) provides mortgage insurance to protect lenders from defaults. Lenders like this, and pass along the lessened risk in the form of good interest rates. Customers like FHA mortgage loans because they have more liberal qualification requirements. They also typically have a lower down payment requirement - 3.5%.
  3. HomePath Mortgage. With a HomePath Mortgage, you can buy a Fannie Mae-owned home with a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance. Expanded seller contributions to closing costs are also allowed.
  4. HomePath Renovation. HomePath Renovation Mortgage is a home improvement loan that lets you buy a Fannie Mae-owned house that requires light to moderate renovation on Fannie Mae-owned properties. The one loan amount includes both the funds for the purchase and renovation - up to 35% of the as completed value, no more than $35,000.
  5. FHA 203k. The king of home improvement loans, the 203k allows you to buy a home and finance improvements, repairs and renovations right into the same mortgage payment. As an FHA option, down payment (which takes into account the price of the home and the cost of the work) is 3.5%. It's great for fixer-uppers!
  6. The military option: VA Loans. Another 100% financing option, this program is specifically for U.S. military veterans.

As you can see, you have some great options for buying your first home. From 100% financing to home improvement loans, you can get a great deal and turn it into your dream home, ditching the apartment for good.

We can help! We have loan options that can help you buy, build, remodel or refinance, no matter where you are on your journey. It's called "Mortgage Loan Options Guide" and you can get it at the button below.

 

Loan Options Guide

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Six Smart Reasons Why You Might Refinance Your Home Mortgage

With interest rates the lowest they’ve been in a while, you may be thinking about refinancing your existing mortgage into a new one. As a homeowner, there are good reasons to consider this option: to get a lower interest rate, to drop private mortgage insurance, or to pull cash from your home’s equity to consolidate debt or make home improvements. The short answer, of course, is to have more money each month for groceries, car payments and the orthodontic’s bill.

Why are VA Loans so Popular?

While no one has ever said buying a home is a simple process, wouldn’t it be nice to reach out and press the “easy” button when it comes time to qualify for your mortgage. If you’re an active member of the military -  or a veteran - qualifying for a VA home loan might be the next best thing.

USDA Rural Development Loan vs FHA Loan

Wanting to buy a home but afraid you won’t qualify for a mortgage because of student loan debt, poor credit or a dismal savings account?

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