Purchasing your first house can be an exciting but challenging process. And while you might be concerned about having enough savings for your down payment or qualifying for your loan, there are certain mortgages that are made to provide you with the assistance you need. But with so many options on the market, you may have difficulty discerning which type to choose. Following are some of the most popular first time home buyer loans that could be your perfect match to get you into the property of your dreams.
At BrightPath, our brilliant mortgage solutions will put you on the path to homeownership.
Federal Housing Administration (FHA) Loans
Most new home buyers choose an FHA loan when purchasing their first house. This is because this first time home buyer loan has fewer credit restrictions and a lower down payment. Since it is insured by the Federal Housing Administration, it allows lenders to offer better rates because their borrowing risk is low. However, to take advantage of its reduced costs and requirements, you are obligated to pay mortgage insurance. So, it is important to consider if this will be the best loan for your fiscal circumstances.
15 Year Fixed Rate Mortgage
A 15 Year fixed rate mortgage is a great first time home buyer loan because it provides you with stable payments that will not fluctuate the way they do with an adjustable rate mortgage. Also, this type of loan tends to have a lower interest rate as compared to a 30 year fixed rate mortgage. But, to pay off your home in a shorter time, your monthly payments will be higher as compared to other loans. If you can afford these increased payments and plan on living in your home for a few years, this can be the optimal first time home buyer loan for you.
30 Year Fixed Rate Mortgage
A 30 year fixed rate mortgage is the most common first time home buyer loan because it offers the same stability as a 15 year fixed rate mortgage but with lower monthly payments, making it easier to qualify for. Also, it allows you to tap into your home equity in case you need to borrow the value of your home in the future. If you plan to stay in your house for at least five years and would prefer making lower mortgage payments over a longer period, a 30 year fixed rate mortgage is the right option for you.
Georgia Dream Homeownership Program
State-sponsored programs are also ideal for providing affordable first time home buyer loans. In Georgia, the Dream Homeownership Program comes with many benefits including down payment assistance, lower interest financing and educational initiatives that can help you get into your first house. To be eligible, you must meet certain income and credit requirements, as well as purchase a property that is $250,000 or less. But, with a standard down payment of $5,000, this can be the solution you need if you have a smaller budget.
At BrightPath, We Will Find the Right First Time Home Buyer Loan for You
There is an endless number of first time home buyer loans currently available on the market. As a result, you want to make sure you find the right mortgage type that will work best for your finances to get you into your perfect property. With the help of the experts at BrightPath, you will get the guidance you need to find the financing that works best for your wallet.
Contact us today to schedule a free consultation.
When you work with BrightPath, you are guaranteed to get into your first home with ease.