Becoming a first-time home buyer is an important milestone, that’s why we work to find the right home loan to fit your needs. Whether it’s a home with room to grow, a fixer upper or your dream home, we offer loans for all financial situations and home goals.
If you’re beginning your research into the home loan process, we’re sharing some of the most popular loan types based on their benefits and affordability for first time home buyers.
FHA Loan
An FHA loan is a home loan that’s backed by the Federal Housing Administration. Banks and credit unions issue the loan and the FHA provides the backing, which means that if you can’t pay the mortgage, the FHA pays the lender instead. Designed for low- to moderate-income borrowers, FHA loans require smaller down payments than conventional loans and can work with lower credit scores.
FHA home loan programs typically help first-time homebuyers with limits on what they can afford. FHA home loans offer the following benefits:
- A low 3.5% down payment
- Flexible income and credit requirements
- Low closing costs
Learn more about the different types of FHA loans to choose from here.
USDA Loan
The USDA loan from PrimeLending is also known as the USDA Rural Development Guaranteed Housing Loan Program. Like the FHA, VA and other government-backed loans, it’s guaranteed by the U.S. Department of Agriculture. It was originally designed to provide a mortgage alternative to rural property buyers who had limited financing options. Today, as populations grow and suburbs expand, it’s not just a loan for farmers and rural property owners. It’s becoming a viable mortgage option for people who want to live away from cities and enjoy country living and may need a more affordable loan option.
The benefits of a USDA loan Include:
- Zero down payment required
- Low interest rates
- Affordable mortgage insurance
- Designed to help lower-income home buyers
Get all the info on USDA loans here.
VA Loan
A VA loan is a great benefit to military personnel and spouses during and after their service. If you’re looking to settle down with a home base or wanting to purchase a home for your growing family, a VA home loan is a great option!
VA loans are partly guaranteed (typically a quarter of the loan value) by the U.S. Department of Veterans Affairs and offer the following benefits:
- No down payment
- Higher loan value
- No private mortgage insurance
- Limit on closing costs
- Option for seller to pay closing costs
- No penalty fee for early payoffs
- Possible VA assistance if you have difficulty with payments
Not sure if you qualify for this type of loan? Learn more about a Certificate of Eligibility and other program information on our VA loan main page.
Down Payment Assistance Programs*
Is a down payment the most daunting part of the homebuying process for you? We’re here to help! There are programs that can help make homeownership more affordable, many with low- and no-down payment options, and some connected to popular government-backed loans.
- NeighborhoodEdge® Closing Cost Assistance¹ — exclusively offered by PrimeLending, this program offers up to $2,000 in closing cost assistance for qualified homebuyers in all 50 states; the property must be located in a low-to-moderate census tract area. In addition, FHA, VA and USDA loans are eligible for this program.
- Conventional 97 — available through Fannie Mae and Freddie Mac, this program requires a 3% down payment and is available for the purchase of single unit primary residence properties. It’s best suited for buyers with excellent credit or average credit.
- HomeReady® — this Fannie Mae-backed program allows for a 3% down payment and offers discounts on mortgage rates and private mortgage insurance; it’s targeted at multi-generation households where several people contribute to the family income and the household income falls below the average for the area.
- Learn more about down payment assistance programs here.
Ready to Buy a Home
We know making the leap from renter to owner can seem overwhelming, but our loan experts are here to ease your mind. We’ll answer any questions you might have and help you find the right loan to fit your financial needs. Connect with a team member today to get started.
