First Time Homebuyer Programs

FHA is the most popular first time home buyer program. FHA requires a 3% down payment on your new home. However there are down payment gift programs available that are allowed by FHA. While FHA does not look directly at credit score to issue a loan approval they will expect borrowers to have a clean credit profile that includes timely payments and no outstanding judgments or collections

Conforming lenders have come up with some very similar programs to FHA's 3% down program known as My Community, Home Possible, and Flex programs to name a few. These programs were developed to assist people, especially first time homebuyers, to be able to afford to buy a home easier. These are not just first time homebuyer programs, but programs that are available for anyone buying a home as long as you meet the program requirements.

Even though you are a first time homebuyer there are still several loan programs available. Fannie Mae offers first time homebuyers programs such as Mycommunity mortgage. These programs require little or no down payment and can have low interest rates and payments.

If you are a Veteran, you can use your VA Certificate to obtain a VA loan. You may want to contact your local VA office to obtain your Certificate of Eligibilty. You can then see if you qualify for 100% financing through the VA.

Certain states (such as Tennessee's THDA) offer a state sponsored mortgage program that is much like FHA but contributes the 3% required down payment. Such programs are not credit score driven, but do require full income and asset documentation and an FHA approved appraisal.

First Time Homebuyer programs also vary from state to state, particularly those programs which are supported by the Federal Government such as FHA or those which rely upon state funding (such as local down payment assistance programs and vocational benefits)

Programs for first time homebuyers change frequently. If you have been turned down in the past, or even if you have been approved in the past but did not purchase a home, you need to check with a mortgage professional that specializes in programs for first time homebuyers to find out if you qualify now.

» DISCLAIMER: The information contained in this article on 'First Time Homebuyer Programs' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.