Common challenges
The biggest barrier is usually cash to close, not the monthly payment. Assistance programs and seller credits close that gap.
Programs that fit
First-Time Homebuyer Loans
First-time homebuyer loans are mortgage options with low down payments, typically 3% conventional, 3.5% FHA or $0 VA, often paired with state or local down payment assistance.
FHA Loans
An FHA loan is a government-insured mortgage that allows 3.5% down with a credit score of 580 or higher, or 10% down with a score from 500 to 579.
Conventional Loans
A conventional loan is a mortgage not insured by the government that follows Fannie Mae or Freddie Mac guidelines.
VA Loans
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs that lets eligible veterans, active-duty service members and certain surviving spouses buy with no down payment and no monthly mortgage insurance.
Tips before you apply
- Get pre-approved before you tour.
- Ask for seller credits toward closing costs in your offer.
FAQ
What is the best mortgage for first-time homebuyers?
It depends on your documentation and goal. The programs that most often fit are First-Time Homebuyer Loans, FHA Loans, Conventional Loans, VA Loans.