Great Mortgage Options for First-Time Home buyers

Great Mortgage Options for First-Time
Homebuyers
Buying your first home is often challenging, but that does not mean it is impossible. In fact, there are
quite a few options that will make it easier to achieve your dream. Here are a few first-time home buyer
programs we think are worth considering.
#1. Good Neighbor Next Door
Sponsored by The United States Department of Housing and Urban Development (HUD), the Good
Neighbor Next Door (GNND) program allows teachers, firefighters, police officers, and first responders
to purchase homes in revitalization areas at half price. The only catch is that you must commit to living
in the home for at least 36 months. After that time, you are free to sell your home and keep the profits.
In addition, you only need $100 down if you already qualify for any FHA-insured mortgage.
#2. USDA Home Buyers Assistance Program
Perhaps you are longing for a quiet place out in the country. In that case, you may want to consider the
U.S. Department of Agriculture’s (USDA) assistance program. A USDA-approved loan could allow for
100% financing, provided you meet the income limitations and other guidelines. There is no hard and
fast requirement to purchase a farm, but the program does primarily target rural areas.
#3. Fannie Mae or Freddie Mac Mortgages
Fannie Mae and Freddie Mac are the government-sponsored enterprises behind much of the country’s
home loans. As such, they are often associated with traditional mortgages. However, a little-known fact
is that they also offer low down payment options for first-time homebuyers. By working with a local
lender affiliated with Fannie or Freddie, you could be eligible for a mortgage that requires as little as
three percent down.
#4. Veteran’s Administration (VA) Loans
If you are an active duty service member, veteran, or surviving spouse of a veteran, you could qualify for
a mortgage guaranteed by the VA. A VA-guaranteed loan may require little or no down payment, and is
typically free from Private Mortgage Insurance (PMI) requirements. Interest rates on VA-guaranteed
loans are often very competitive as well. And if you ever have difficulty making your mortgage
payments, you can have a VA representative negotiate new terms with your lender on your behalf.
#5. Section 203(k) “fixer upper” loans
One way to purchase an inexpensive home is to choose a “handyman special.” Even so, the problem
often becomes having enough money to make repairs. With a 203(k) loan from the Federal Housing
Authority (FHA), you can borrow enough money to fix up your property and roll the additional funds into
your mortgage. Not only can a 203(k) loan allow you to purchase inexpensive property, but you can
often secure such as loan for as little as three percent down.

If you have never owned a home because you thought it was out of your reach, think again. These and
many other programs are available to help you achieve your goal while staying within your budget. Now
you have no reason not to take the leap and purchase that home you have always dreamed of.