Becoming a first-time home buyer is an important milestone, and the good news is that we know how to help you 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 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 homebuyers. To get an idea of how much home you can afford, try our free home affordability calculator. Read on to learn more about our first-time homebuyer programs.
FHA loans for first-time homebuyers
An FHA loan is backed by the Federal Housing Administration (FHA). 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 home buyers 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 loans for first-time homebuyers
The USDA loan from PrimeLending is also known as the USDA Rural Development Guaranteed Housing Loan Program. Similar to 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 solution for home buyers looking for a more affordable 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 loans for first-time homebuyers
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 payment1
- 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 Programs2
Is a down payment the most daunting part of the home buying 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 state housing programs or popular government-backed loans.
- 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
- 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.
First-time homebuyer tips
Buying a home is a big decision which can come with excitement and nerves. To set yourself up for success, try out these tips for first-time homebuyers.
- Set a budget. Understanding what you can afford from the get-go can make your home search and mortgage process a little easier. Get an idea of what your mortgage payment might look like with our free mortgage calculator.
- Get approved3 for a mortgage first. By getting approved for a mortgage at the beginning of your homebuying journey, you can narrow down your home search by shopping for homes you know you can afford. Plus, when it comes time to make an offer, you can show sellers your offer is as serious as cash.
- Don’t skip the inspection. Make sure you can love your home for the long haul by getting an inspection done before you close. While you might think you had an eagle eye during the home tour, a professional inspector may be able to uncover the things you can’t see, like structural repairs, and can make sure the home is up to par.
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.
1Down payment waiver is based on VA eligibility.
2Certain restrictions apply, subject to down payment assistance program guidelines. Not available in all areas. Please contact your PrimeLending loan officer for more details.
3Approval means an Underwriter has reviewed your application and has verified all necessary forms of income, assets, and credit. All loans subject to final credit approval and acceptable property. Conditions and restrictions may apply.
