Buying your first home is a thrilling experience. Once all the paperwork has been signed and you’re holding the keys to your very own home, it’s a feeling like no other. However, as a first-time homebuyer, getting started in the home buying process can feel challenging. With all the many options available, you can put your mind at ease knowing there is a first-time home buyer loan out there perfectly suited for your needs.
Choosing the Right First-Time Home Buyer Program
Saving up for a down payment on your first home can feel like an obstacle in your path to owning your own house. However, there are many mortgage resources available to first-time home buyers to help make securing your first home much easier. A few of these options include:
The Federal Housing Administration (FHA) insures mortgage loans which reduces the risk to lenders. This means lenders can make the home loans available to more people. FHA loans have smaller closing costs than some other loans and are great if you have a lower credit score. However, they do come with higher interest rates to make up for the other attractive offers. While an FHA loan can be a great option for a first-time home buyer, to make sure you’re getting the right loan with the most competitive offerings, it’s important to talk to your lender about all loan options available.
If you or your spouse are active duty or retired military personnel, you may be able to apply for the United States Department of Veteran Affairs (VA) loan. Since the VA guarantees at least part of the loan, lenders can offer special features such as competitive interest rates, no minimum credit score required, and no down payment required.
If your budget only allows for a fixer-upper, you may be able to get a 203(K) loan. Section 203(K) of the FHA supports people willing to upgrade vacant homes that need to be “fixed up” as this is good for both the community and the economy. The government looks at the property value once the improvements have been made so you’re able to borrow that amount of money included in your primary mortgage.
Some states offer loans designed specifically for first-time homeowners. For instance, those looking to buy a home in Atlanta or other cities in Georgia can take advantage of the Georgia Dream program. This is designed for first-time homeowners or anyone who hasn’t owned a home in at least three years. Qualifications include meeting certain income requirements and purchasing a home under a certain price. Homebuyers also need to invest at least $1,000 towards the purchase of their home.
Choosing a First-Time Home Buyer Loan with BrightPath
At BrightPath, we offer several programs for a first-time home buyer loan to help you make your dream a reality. These programs typically offer lower down payments and some type of mortgage insurance that can be structured to fit your needs. Other benefits include:
- Alternative credit histories accepted
- Non-occupying co-borrowers are allowed
- Closing costs/down payment funding in the form of gifts or grants
- No cash reserves needed
Give us a call today at 888-222-6003 or complete our online form so one of our experienced mortgage specialists can help you find the first-time home buyer loan that’s right for you.