If you’re buying your first home, navigating the world of mortgage loans can feel overwhelming. Fortunately, there are first-time homebuyer mortgage programs that offer low down payments, reduced interest rates, and flexible credit requirements.
What Is a First-Time Homebuyer Mortgage?
It’s a loan product designed specifically for people who haven’t owned a home in the last 3 years. Many are backed by federal or state programs.
Top First-Time Buyer Programs in the U.S.:
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FHA Loans: As little as 3.5% down with a credit score of 580.
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VA Loans: 0% down and no PMI for veterans and active-duty military.
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USDA Loans: 0% down in rural areas; low income requirements.
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Fannie Mae HomeReady & Freddie Mac Home Possible: Low down payments and flexible debt-to-income ratios.
Down Payment Assistance (DPA):
Many states offer grants or forgivable second mortgages to help first-time buyers with down payments or closing costs.
Steps to Qualify:
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Get a mortgage preapproval
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Understand your credit profile and fix errors
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Compare multiple lenders
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Apply for DPA or state-specific programs
High-value keyword: first-time homebuyer mortgage programs