First Time Home Buyer Programs

Locate the best first time home buyer programs. Home buying is a big decision so we want to learn all we can about home mortgages before selecting our first loan.

When you start looking around, house mortgages or programs are plentiful. With so many choices, how do you know which program is best for you? Keep reading and soon you'll be filling out that application to get that first house!

Want to see if you qualify? Maybe you want to has been able to help millions of people get a loan. Below you'll find a overview of the basic home buying programs. Some work for first time home buyers while others may not.

FHA/VA Loans

Federal Housing Administration (FHA) and Veterans Administration (VA) first time home loans are government sponsored and guaranteed loans with very flexible qualification requirements. VA loans are specifically designed for eligible military personnel, veterans, and widows or widowers of veterans. FHA/VA loans provide an affordable means of buying a home by lowering some of the costs of the mortgage.

I personally think FHA home loans are the best programs to use. It offers lower down payment, fixed interest rate as well as FHA allows you to use down payment assistance programs that create a real zero down home loan.

Many additional first time home buyer programs can be found with FHA and the VA.

Fixed Rate Mortgages

Adjustable Rate Loans (ARM)

Adjustable rate loans is also one of the first time home buyer programs. However, it's not always the best choice for first time home loans. They are home mortgages where borrowers are given an introductory rate for a specific period of time, for example, one month to 10 years, depending on the product.

This rate is lower than a traditional 30-year fixed-rate mortgage, and in some cases, the difference is significant. Upon expiration of the introductory period, a borrower's interest rate will adjust on the "change date" on a regular basis for the remainder of the life of the loan. The new interest rate is based on a combination of a specific index - a variable economic indicator - and a margin percentage, which is predetermined at closing.

Adjustable rate mortgages can experience a great deal of payment volatility depending on market conditions. However, these home mortgages also can be an excellent option if borrowers do not plan on living in a property for a long time or need a low rate when they are just starting out. Some products have adjustable rate mortgage options including the ability of converting to a fixed-rate loan known as a Convertible ARM.

Personally, I do not prefer this one as one of the first time home buyer programs because when it does adjust, interest rates may jump 2%-3%.

Zero Down Programs

There are some first time home buyer programs available that allow borrowers to purchase or refinance a home without putting any money down at closing. These products may emphasize lower credit scores, provide entry into selected housing markets or allow financial concessions by the seller. All zero-down products provide 100% financing for individuals who do not have sufficient funds for a traditional down payment. Again, although this is the choice by many as one of their first time home buyer programs, you should be aware, this may not be your best choice personally.

Jumbo Loans

For loans that exceed the "conforming" loan size limits (currently at $417,300, but adjusted yearly to reflect changes in the average sales price of a single-family house), there are products that have both fixed-rate and adjustable rates available. Loan size can be as high as $2 million.

Unless you have a rich uncle, lenders do not offer these as first time home buyer programs because of the size of the loans.

Home Equity Lines of Credit (HELOC)

When you establish a home equity line of credit, what create is a revolving checking account using the equity in your home as collateral. You can use this account to write checks for almost any reason. Some people use it for home improvements, buying an automobile, paying off credits cars and more. Usually you have the option of making principal and interest payments or interest only. In almost all cases the loan matures in 10 years so you have to get it paid down to zero by this time.

Normally the interest rate is figures on prime plus a margin. The margin is the banks profits. Usually it is 1%-2% margin. So if the prime rate was at say 3% then you add the margin and your HELOC rate would be 4% or 5%. This is a great option ofr you if making a major purchase and you want to spread the repayment out over some time.

Second Mortgages

Second mortgages, which have a term of five to 30 years, utilize the remaining equity in a property that a "first" mortgage is not using as collateral. Due to their increased risk, lenders traditionally charge higher interest rates on this product. Second mortgages are useful for paying off debt, for avoiding higher rates associated with jumbo loans, or for eliminating private mortgage insurance when used in conjunction with a "first" mortgage that represents 80% or less of the value of the property.

So In Conclusion....

The reason I feel is a good possibility for you is because they have a fast, no hassle way to apply. Also, they put you in touch with at least 4 different lenders who will compete for your business.

When I was in the mortgage business, I was on the other side of this camp. I was one of the four loan officers calling people to make them loan offers. So i know how hard these guys will work to get your business.

Just be sure to select "purchase" and "first time home buyer" in the drop down boxes in the online form. Just 4 simple steps and you can find lenders around you that can offer first time home buyer programs unique to your community.

There used to be a buyer assistance program that helps first time home buyers. Find out what happened to it and what options you should consider now.

Learn about two awesome programs at First Time Home Loans. This can narrow down your search very quickly.

Understand the fixed rate mortgage program by reading Best Fixed Rate Mortgage. Learn why this program is the best way to go.

VA Home Loans work very well for those who have served in the military. Find out the requirements to qualify.

Zero Down Home Loans are hard to find. Discover how they work and where to find them.

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