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First Time Home Buyer Loan Programs

It's no secret that buying your first home can be one of the most exciting and stressful times of your life. It is really important that you look around and talk t a few proven lenders so that you can secure an affordable first time mortgage. Shop terms and interest rates but make sure that you compare several "Good Faith Estimates" with someone that has experience. There are worthy loan programs for first time home buyers, but you need to select the one that best meets your needs, goals and eligibility. First time home loan programs have become very competitive, so there is a good chance you can find a mortgage that is obtainable and affordable as well.

Things like interest rates and payment terms will vary greatly depending on the type of first time home loan program you use and on your specific situation. If you can, look into each of the first time home buyer options below and speak to a couple of different mortgage sources in order to get a better idea about what is possible for you and what may not be valid for your situation. was created to simplify the loan process for people making the jump from a renter to a homeowner. Take a few minutes and read about several of the popular first time loan programs below:

FHA - The Federal Housing Administration was created during the Great Depression, in an effort to help Americans more easily obtain their dream of becoming a homeowner. The U.S. Government also wanted to create an agency that would help protect and stimulate the ailing housing market. FHA was born as a first loan program that catered to 1st time home buyers eighty years ago and today the agency continues to service the same niche. FHA insures these first time home buyer programs and guarantees affordable financing and no penalties for refinancing or early pay-off. FHA continues to be one of the more popular choices for people seeking bad credit loans for 1st time home buyers.

Fannie Mae - In the nineteen-sixties, the U.S. Government created Fannie Mae in an effort to help stabilize the secondary market. In the process Fannie helped develop several popular loan programs for first time home buyers.

Freddie Mac - In 1971, the U.S. Government created Freddie Mac to further stabilize the housing sector. They also developed this government sponsored enterprise to be an alternative financing vehicle to Fannie Mae. In most cases they offer a competitive programs for 1st time home buyers.

VA - If you are an active or retired military veteran, there is a good chance you will be eligible for a first time home loan that is guaranteed by the Veteran's Administration. There is no down-payment required with these loans as the VA guarantees 100% home loan programs for eligible borrowers. VA mortgages have helped millions of military people become first time home buyers with low interest rates, low fees and no down-payment.

Down-Payment Assistance Loans -This down-payment program helps qualified applicants get up to $15,000 toward the purchase of their first house. This program encourages banks and lenders to put aside a portion of its Affordable Housing Program contribution annually and this enables the WISH to matching funds in the first time home buying grants to off-set down-payment requirements and closing costs on specific loan programs.

USDA - In the past, many consumers that resided in rural areas had difficulty obtaining financing because most of the conventional lenders were not interested in extending credit in non-suburban or metro regions of the country. The USDA offers first time home loan programs to people in rural areas and no down-payment is needed in most instances.

10 Things First Time Home Buyers Should know Before Making an Offer

Buying a home for the first time is one of the single most important things you'll do. It will impact your short term and long term future, and owning your first home is something that should bring you joy.

However, the process of actually buying that first home can be stressful and filled with challenges. If you want to get the most from your home – and the process of buying it, there are several things that a first time home buyer should keep in mind. Here are some of the biggest ones to pay attention to.

1st Time Home Buyer Program
  1. Their Credit Score And Its Impact On The Deal – Your credit score is something you should know well, and understanding that the higher it is the more of an impact it will have on things like loan terms and availability is important. There are numerous loans out there for those with lower credit scores, but remember that lower scores usually mean higher rates. Learn more about buying a home with poor credit..
  2. Price Ranges And Sticking To Them – Know your price range and don't be afraid to stick to it. Even going out of your budget by a few thousand dollars can add up to big costs over the lifespan of a loan. Set a price range and make offers within that range. Consider alternative finance programs as well. Ask about new programs for a manufactured or modular home loan.
  3. Down Payment Amount And How It Influences Things – Your down payment gives you more power during the process of securing a loan. While lower down payment loans are out there, they often require higher credit scores or higher interest rates. The better your down payment, the better your loan will be and the better your ability to make a fair offer on a home will be.
  1. Closing Costs Basics – Closing costs cover things like attorney fees, realtor costs, insurance fees, and more. Be sure that you know who will be responsible for paying them before you make an offer.
  2. You Can Shop Around For A Lender – Be sure that you know that you have the best lender available. Shopping around for a lender ensures you get the best results from your loan.
  3. The Right Realtor Matters – Like lenders, realtors matter. Review your options and choose a realtor that really does have your best interests in mind. It will help you in a big way.
  4. The Condition Of The House – Always know what condition the home is in. It's well within your rights to have an inspection and an appraiser take a look at the condition of the home before you buy.
  5. You Have Numerous Lender Options – We mentioned lenders above, but this time we're talking about the fact that you can secure government backed loans as well as those in the public sector. These government loans are often perfect for first time buyers.
  6. Costs That Are Immediate After Purchase – Once you close, will you be shopping for a mover? Are there immediate repairs? Be sure to consider what these initial, immediate costs are and include them in your budget when making an offer.
  7. Insurance Factors - Title insurance, homeowner's insurance, and other insurance factors need to be given consideration as well. Don't overlook them.


First Time Home does not offer mortgages or direct financing. is a website that offers information about house financing and does not guarantee 1st time home mortgage programs directly or indirectly through representatives or agents. provides a news and information service by offering editorial content related to the housing and mortgage industry. This website has no official relationship with the Federal Housing Administration or the Department of Housing and Urban Development.

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