| There are many loan programs that can benefit a | | | | typical lender. |
| first time homebuyer, but only a few that really do a | | | | USDA Loans |
| good job. Government loan programs typically offer | | | | USDA loans are also excellent loans for new |
| the best down payments and interest rates. These | | | | homebuyers. If the house you find is zoned rural (and |
| include: FHA, USDA and VA loans. | | | | many small towns are), you may qualify for a USDA |
| FHA Loans | | | | loan. Theses loans offer 0% down payments and |
| FHA Loans typically are the most popular loan | | | | have excellent fixed interest rates. There are |
| program for first time homebuyers. With only a 3.5% | | | | maximum income levels on these loans however, but |
| downpayment requirement (which can be gifted by a | | | | the more dependents a new buyer has, the more |
| family member or relative), and higher debt-to-income | | | | typically, they can earn and still qualify. See a qualified |
| ratio allowances (a buyer can have much higher debt | | | | government mortgage specialist for details. |
| on their credit report then a local bank would allow), | | | | VA Loans |
| these loans can be a sure thing for someone looking | | | | VA Loans or Military home loans have been an |
| to go from renting to owning. | | | | excellent first time homebuyer loan for many years. |
| In addition, there is much lower monthly mortgage | | | | These of course are for military veterans or |
| insurance payments on these loans then traditional | | | | personnel only, but if you are one, and have been |
| loans, and this is because FHA charges a buyer a | | | | active at least 180 days, have credit scores of 620 |
| certain percentage monthly for (MI) and rolls the | | | | or above, you may qualify. If you haven't been |
| remainder of it into the loan amount. This is called the | | | | active for 180 days but been in the military reserves |
| MIP funding fee. | | | | for at least 6 years, then you still can qualify. |
| FHA loans are offered by many mortgage companies | | | | These loans also offer 0% no money down financing |
| and banks per state, but typically, you will want to | | | | and excellent interest rates. Also, VA loans have no |
| go with a mortgage company that specializes in | | | | monthly (PMI) Private mortgage insurance |
| these government loan programs, for they tend to | | | | requirements and thus can have some of the lowest |
| have a larger portfolio of programs and rates then a | | | | monthly payments for first time home buyers. |