First Time Home Loans

We'll talk about two very good choices actually. Both loans are backed by the US Government. The best part of this, these first time home loans have been around for a very long time so they are not likely to go away anytime soon. Not like the recent meltdown of sub-prime mortgages.

Understanding your different options will help you to piece together a perfect first time home loans puzzle just for you.

When I was in the mortgage business, I strongly suggested every client only look at the fixed rate loan. This made it better for them and myself. Why do I say that? Well, I knew going in that my first time home buyer could afford this mortgage payment. Then, I also was able to sleep better at night knowing they could stay in the home for several years without too much worry about the payment changing on them.

FHA Home Loan -- Option #1

The first and foremost choice for first time home loans is the FHA home loan. The FHA home loan program has been around since 1934. First thing you need to know is that FHA (Federal Housing Authority) does not actually lend the money. FHA is a division of HUD or Housing and Urban Development. What HUD does is it provides a guarantee (like insurance) to the FHA loan program thus the lender has no risk.

With a guaranteed loan, the lender is more inclined to loan you money for a mortgage since it is backed by the US Government. So in case you stop making your mortgage payments, then the FHA Insurance would pay the lender off and then HUD would take possession of the home. Have you ever heard of a HUD Foreclosure? In most cases, that is a home bought using the FHA home loan and the owner lost it. HUD had to foreclose and now the US Government owns the home.

This kind of program allows first time home buyers to purchase a house in the city or country. The choice is yours. First you qualify for the loan, then the house has to qualify. Neither is very difficult so don't worry.

Zero Down Home Loans -- Option #2

Now this second choice might be of interest to you. If you want to live in a rural community, this is a great choice. Again, backed by the USDA, another branch of the US Government, this program is designed to help you in a similar fashion as the FHA loan. Again, you have to qualify for the loan program first, then you have to take into account the areas where you can buy a home since that is decided by the program guidelines.

It has certain income limitations whereas the FHA loan program does not. Also it does not require a down payment on the mortgage. It's a true zero money down loan. Wow, have you heard of any no money down home loans after this mortgage mess? I didn't think so. Most people felt these deals were gone.

Well, it's still out there and you may not have known about it. It is kind of a best held secret. Sort of like a finding a large golden nugget in a pile of hay. You have to look for it, but it is out there.

Like the FHA loan it is a fixed rate home loan. Also, it allows you to even build a brand new house. Imagine that, you can build your dream house in the country and it's your very first home! Again, you do have to meet the guidelines.

Fixed Rate Loan -- Mortgages Conclusion

In conclusion, I hope you found this information helpful. These are some of the best first time home loans I know of. Yes, there are many others. Do you feel like me, "if it ain't broke don't fixed it"? Sorry about the poor grammar, but my point is, both of these programs have been around for decades so my guess is that they work.

Of course, any of these first time home loans requires a lender that will work with them. Sometimes that's where the challenge comes in. . They are very helpful in finding those lenders who will work with these two awesome options.

So I kind of like the zero down home loan program as one of the best first time home loans. There is a lot more to this. To learn more visit Zero Down Home Loans for greater details.

There are other FHA home loans. Best FHA Home Loans gives you quite a description so you can investigate further.

Want more information? Go to First Time Home Loans Explained for more details.

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