What Loans Are Best For First Time Buyers?

What Loans Are Best For First Time Buyers?

Make financing the easiest part of buying your first home. At Blackmon Home Loans in Las Vegas, we are dedicated to simplifying Nevada first-time homebuyer programs for locals looking to buy.

What Are The Best Loans For First-Time Buyers?

There are five typical mortgage options that work best for first-time buyers.

A Low Down Payment Conventional Home Loan

If you’re in the market to buy a house, you’ve probably heard of Fannie Mae and Freddie Mac. These federally-backed home financing companies provide lending guidelines most homebuyers can qualify for.

Examples Of Conventional Loans

  • 15-year fixed-rate mortgages
  • 30-year fixed-rate mortgages
  • Adjustable-rate mortgages

Conventional Mortgage Features

  • Down payment of at least 3%
  • Low private mortgage insurance (PMI)
  • No PMI required with 20% down payment
  • Loan rates based on creditworthiness
  • Higher funding limits
  • Fewer restrictions on appraisals
  • No special requirements

FHA Loan Requirements For First-Time Buyers

Federal Housing Administration-backed FHA mortgages are also popular among first-time buyers. If you have a less-than-perfect credit score or have gone through bankruptcy, this may be the next best option to conventional home lending.

  • A credit score of 580 or higher
  • Down payment of 3.5% or more
  • Debt-to-income ratio less than 50%
  • Property appraisal required
  • Mortgage insurance for less than 20% down

Zero Down Payment Home Financing Options

If you’re looking for no down payment options, you’ll want to see if you qualify for a VA or USDA mortgage. Both Veterans Affairs and the IS Department of Agriculture offer first-time buyers the chance to finance a house with zero down, but you will have to meet specific requirements.

VA Home Financing For First-Time Buyers

  • Low interest rates
  • No down payment
  • No private mortgage insurance
  • Lenient borrowing requirements
  • No specific minimum credit score
  • Specific armed forces service requirements

First-Time USDA Mortgages

  • No down payment
  • Low fixed interest rates
  • Borrow up to 100% of the purchase price
  • Low mortgage insurance fees
  • Flexible credit score requirements
  • Can be used for some eligible home repairs & upgrades
  • For rural property purchases
  • Specific income limit requirements

Finding Money To Fix Up Your First Home

If your first home is going to need a little work, Fannie Mae, Freddie Mac, the FHA, and the U.S. Department of Housing and Urban Development (HUD) all offer programs that can help you buy and renovate with one loan. As your knowledgeable Las Vegas mortgage lender, we can help you see if you qualify for these or any other above-mentioned lending options.

  • FHA 203(k) loans
  • Fannie Mae HomeStyle
  • Freddie Mac’s Choice Renovation Loan
  • HUD Energy-Efficient Mortgage (EEM) Program

Get Pre-Approved To Buy In Las Vegas

Now that you know more about the financing options available to first-time home buyers, why not find out exactly which programs you qualify for and apply today? Give Blackmon Home Loan’s friendly loan officers a call or apply online to get started. Take that first step to homeownership in Las Vegas.

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