Best First Time Home Buyer Loans

First Time Home Buyer Loans | First Time Home Buyer FHA Loans

Many federal, state and local agencies administer programs to assist people who need help buying a home. Some of these are loan programs; others provide assistance with down payments or with building a home.

Federal Housing Administration (FHA) mortgage loans.

These mortgages, administered by the U.S. Department of Housing and Urban Development (HUD), are government-insured loans that offer very low downpayments, which may be borrowed from relatives. Rates are often lower, and qualifying is easier because credit is not as large a factor. These loans are often assumable, meaning you can take them over from the previous owners or allow a buyer to take it over from you. Refinancing is easier, and there are other products and services available. There is, however, a cap on how much can be borrowed. Processing may take longer and appraisal guidelines may be strict; the house must be worth the selling price. FHA mortgages are not restricted to first-time borrowers.

U.S. Department of Veterans Affairs (VA) Home Loan Guaranty Service.

VA mortgages are government-guaranteed loans available to veterans of the armed services, those currently on active duty or in the reserves, and widows or widowers of veterans. Like FHA loans, VA loans have guidelines that allow more people to qualify. In addition, some VA loans require no downpayment at all. There are limits on the size of VA loans, but usually they are large enough to cover the purchase of moderately priced homes across the country. VA-guaranteed home loans are made by private lenders. The guaranty means that VA will protect the lender against loss if the veteran or a later owner fails to repay the loan.

First Time Home Buyer Loans | First Time Home Buyer FHA Loans