First-time buyers might be cash-strapped in this environment of rising home prices and higher mortgage rates. As a result, it can be harder for them to qualify for a conventional loan and they.
As a state agency, THDA designed the great choice home loan program so that lenders are able to say “yes” to more first-time homebuyers. Responsible lending is our top priority. We only offer 30-year, fixed interest rate home loans, and we’ve never offered anything else.
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Organizing a plan for finding an FHA home loan and shopping for your first home can help save time and money.
FHA Loans. FHA loans help first-time buyers purchase homes by offering government insured loans with more lenient qualifying guidelines such as lower down payment requirements. If you qualify for an FHA loan, you may be able to put as little as 3.5% down*, as well as use gift funds to pay for the reduced down payment amount.
Best FHA Lender for First-Time Buyers: loanDepot. Learn More . on lender’s secure website. Learn More . on lender’s secure website. Consider this if you want an FHA loan from a mortgage lender with good service and a wide selection of refinancing options.
The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 – $2,000. The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price. That’s why many first-time homebuyers turn to HUD’s FHA for help.
The most significant FHA first time home buyer benefits are the reduced down payment (only 3.5 percent for individuals with a credit score of 580 or higher) and the lower credit score requirements. They are particularly great for first time buyers because they do not actually require credit at all.
The FHA program is a great option for anyone looking to buy a starter home, mostly because potential buyers only need to put down 3.5% of a home’s value at the time of purchase.Contrast that to the 20% most conventional loans require and you’ll understand the benefit. In fact, it’s one of the easiest mortgages to qualify for.
If you're a new to the world of home loans, we have the home loan experts and resources to help you on your first home buying journey. We're ready to help you .