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First Time Home Buyer Programs

As a first time home buyer, home loan programs are available that can benefit you in purchasing a home.  Check into the best home loans for first time buyers.  Discover which assistance programs will be right for you and your available down payment.

Your Real Mortgage Consultant at Winner’s Mortgage can help you determine the smart choice for you.

Do You Fit Here?

A first time home buyer can receive extra benefits compared to other types of buyers. This includes reduced interest rates and assistance with closing costs and a reduced down payment.  Learn more here.  Also, see the article “First-time homebuyers who want to own their own home”.

Definition of a First Time Home Buyer

A first time home buyer is defined by the US Department of Housing and Urban Development (HUD). The department sets up criteria to assist lenders to identify first time home buyers. And the criteria include the following:

  • A person who has never held ownership of a principal residence during the span of the 3 years ending on the purchase date
  • A displaced homemaker who members who only owned a home together with a spouse
  • A single parent who owned a home with the former spouse and wants to purchase one after separation
  • A couple who have never owned a house before (where one was a homemaker, and one has never owned a home before)
  • A person with a principal residence but without a permanent foundation (an example of this is a mobile home)
  • A person with the owned property but not in compliance with local, state, and model building codes (This means that the property cannot be made into compliance for less than the costs of a permanent structure construction)

A first time home buyer is qualified for down payment assistance programs.  These programs offer benefits to first time home buyers.

Referring to these criteria, can give yourself credit as a first time home buyer? Discover the best home loans for first time buyers.

Benefits that First Time Home Buyers Enjoy

If you do qualify with the HUD criteria, you can enjoy some benefits. Moreover, a first time home buyer can take advantage of these benefits:

Down Payment Assistance

A first time home buyer benefits from down payment assistance with specific programs. These programs will require a small down payment if the zero-down option is not available.

Grants

First time home buyers get cash as grants for expenses related to the home purchase. Examples of expenses include closing costs and down payment.

Closing Fees Assistance

Benefits for a first time home buyer include closing fee assistance. Some first time buyer programs limit the amount of closing costs.

Better Interest Options

First time home buyers have loan choices not available to other buyers. Interest costs can be reduced through subsidies.  Some organizations help first time buyers qualify for loans with lower interest rates.

Deferred Payments

If first time home buyers have difficulty with the loan payment, interest and payments can be deferred. Moreover, if necessary, they are given the chance to sell the property to repay the mortgage.

Loan Forgiveness

In some cases, first time home buyers can benefit from loan forgiveness. So this means that those who have stayed in the property for a period can have the debt canceled.

Important Note

These benefits vary depending on the wide variety of first time home buyer programs available. But none of them are guaranteed with any specific program.

Benefits that a first time home buyer can receive will depend on several factors. Some require excellent credit scores while others rely on the debt to income ratio.  Availability also depends on the lender and the type of program.

Basic Process of Home Purchase for First Time Buyers

As a first time home buyer looking for great credit programs, understand the process. Explore what you should expect when purchasing a home for the first time. Here are the basic steps of the process. Also review Winner’s Mortgage exclusive Winner’s Mortgage Purchase Program.

Step 1: Analysis of Your Situation & Possible Best Options

Ask for the assistance of Winner’s Mortgage Real Mortgage Consultant for cold, hard facts. This helps you know what to expect. Start with Winner’s Mortgage no obligation Client Questionnaire loan application as the first step.  That is how to know your best options with no commitment.

A consultation with a dependable Real Mortgage Consultant from Winner’s Mortgage will provide you with the best options for you. There are important factors to consider that are not about just interest rates.  Learn here how to really choose a mortgage, “How to Pay Less for Your Mortgage With Three Simple Secrets”.

Your Real Mortgage Consultant will discuss options that are smart choices for your situation. The Client Questionnaire is so important because your responses provide the information needed to give you great information for you.  So, Get Started here.  After receiving your information from the Client Questionnaire, then we schedule our “Get Acquainted” meeting with you either in the office or online.

In the meeting, your Real Mortgage Consultant will discuss the documents needed. You receive your real pre-approval after a full “Get Acquainted” consultation.  That is the only way to receive a pre-approval letter you can trust. Plus, any additional instructions and clarifications that will help you are also discussed.

See here how a Real Mortgage Consultant is the right choice, not just a typical run-of-the-mill loan officer.

Step 2: Planning and Choosing a Real Estate Agent

Your Real Mortgage Consultant with Winner’s Mortgage, your credible choice, will connect you with real estate agents with access to properties suitable for you.  The agent will help you find a home for you which considers your needs and wants. Learn more about this process here.

After finding the home you want, work through the home inspection as follows:

  • The seller accepts the purchase offer
  • Make an offer with an inspection contingency
  • Sign the purchase agreement with the seller and real estate agent
  • Order the home inspection
  • Receive the inspection report
  • Discuss possible anything revealed by the home inspection with the real estate agent
  • Based on the inspection, decide if you will proceed, negotiate, or not proceed with the purchase

First time home buyers are recommended to look for a property they can add value to, perhaps needing minor remodeling or upgrading.  This can be a good strategy to get a home for less money where you can possibly add some of your own labor to increase its value.  Wise choices to substitute time for money could pay off for you.  The real estate agent from your Real Mortgage Consultant can give you good advice.

Step 3: Loan Application Proper

When you proceed, the next step is to finish the application ready to submit to underwriting.  Any additional or up-to-date documents will be needed at this time.  Besides working with your Real Mortgage Consultant to complete and sign your loan application, the following documents will become part of the process.

  • Loan Estimate Form – shows the details of your loan
  • Title Opinion and Title Insurance – performed by the title company and reports on any problems with ownership of the property, title insurance will be issued to cover any problems not previously discovered
  • Appraisal Report – a report on the value and condition of the property for the lender, this tells the lender more about the property which secures the loan
  • Employment and Bank Account Verifications – verifications ordered from your employer and bank to prove your employment and banking relationships
  • Tax Transcripts – a transcript of your tax return from the Internal Revenue Service

The lender will receive all these documents for processing and submit them to underwriting.

Step 4: Underwriting

An underwriter will review the loan application and all supporting documents.  The underwriter will approve the loan, or most likely issue conditions that must be met to obtain approval.  This is a process handled by your Real Mortgage Consultant on your behalf.  And as a first time home buyer, this assistance will be invaluable.  By the way, a rejection of the loan at this point would be unlikely unless something unexpected happens.

If it has not already been locked, the interest rate will be locked in this step.

Step 5: Closing

Moving to closing the financing and finalizing your home purchase, your Real Mortgage Consultant will guide you through the final part of the process.  This assistance is especially valuable for first time home buyers.

You will receive a Closing Disclosure document in advance of the closing where you can review the final purchase and financing terms.

Then you sign the final documents and you own your new home.  Along with your new home ownership, you also have new responsibility for a mortgage payment and the burden that goes with it.

This is why the Winner’s Mortgage Master Plan, which you receive as a free gift with your mortgage, is so valuable to you.  Use it well and you can WIN with your mortgage, not lose like so many people lose, and they don’t even know they are losing.  Let your new homeownership be a blessing to you, not a burden, and the Winner’s Mortgage Master Plan is how you can make that happen.

FAQs

As a first time home buyer, you have a lot of questions.  Here are the answers to some of your mortgage questions when it comes to home mortgages.

Do the first time home buyers have an income limit to qualify?

Income limits can be an important consideration for first time homebuyer purchase financing credit programs.

The income qualification depends on the program and the lender for which you are applying.  More homeownership programs can be available for low- to moderate-income households.  Your DTI (debt-to-income) ratio will be considered.

How can I qualify for down payment assistance?

Contact your Real Mortgage Consultant at Winner’s Mortgage for assistance.  That is much better than trying to find down payment assistance programs on your own.  Don’t settle for less.  Expect Winner’s Mortgage to get the job done.

How do I apply for a first time home buyer grant?

One of the benefits of applying as a first time home buyer is access to grant programs. In fact, low- and moderate-income borrowers may benefit from forgivable loans and grants.

How can I find the best loans for first time home buyers?

You can find the best home loans for first time buyers by contacting your Real Mortgage Consultant. Winner’s Mortgage has excellent first time homebuyer programs that could work well for you.

5 Simple Tips First Time Home Buyers Can Use

Being a first time home buyer has its benefits and disadvantages. And one of the disadvantages is the lack of information and experience with the homebuying process.  To help you in this process, follow these 5 simple tips.

1. Review your financial health before applying for a mortgage

As a first time home buyer, review your financial health, including your credit, income and expenses. The better your financial situation, the more financing options will be available to you.  Work on these steps.

  1. Carefully assess your expenses – Do you have enough income remaining each month so that purchasing your own home does not become a burden?  Can you realistically reduce your expenses to a level that you can sustain over a longer-term time period?
  2. Calculate your cash in savings – Do you have enough savings to accomplish the home purchase, plus have a reserve fund for the extra expenses of homeownership, plus an emergency fund for general living expenses?
  3. Check on your credit standing – A better credit history will help you to receive better financing terms.
2. Be specific about the features you want your home to have

As you imagine purchasing your dream home, be specific on the details. Make a list of the features you want your home to have before searching the market. As you have access to the best home loans for first time buyers, knowing the details of what you want will make the process go more smoothly.

3. Choose the type of home that will benefit you the most

In addition to the features you desire, consider the type of property you will purchase. From a traditional single-family home to a townhouse, or a duplex or four-plex, know what you would like.  Knowing your preferences will help both your Real Mortgage Consultant and the real estate agent Winner’s Mortgage recommends to best help you.

4. Check the amount of mortgage you can qualify for and can afford

Be careful about what you can really afford to purchase your own home.  It may be less than you think.  Get the critical advice of your Real Mortgage Consultant on this important decision.  Avoid the problem of purchasing more home than you can easily handle financially, then being in financial bondage to that house.

This is how people so often lose with their mortgage instead of WIN.  Winner’s Mortgage desire for you to WIN with your mortgage is that you can be free of your loan payments much more quickly than society tells you.  Rather than 30 years or more to pay off a mortgage, Winner’s Mortgage with the exclusive Winner’s Mortgage Master Plan can guide you to being free of your mortgage payment and all other payments in as little as 6 to 10 years.  That is only possible if you purchase the right home with the right financing up front.

Therefore, make your Real Mortgage Consultant your early consultant and advocate guiding you to WIN with your mortgage.

With your credible Real Mortgage Consultant, not just any typical run-of-the-mill loan officer, you will get a real pre-approval, not just a worthless pre-qualification.  There is a huge difference, so don’t let yourself be fooled by just any typical run-of-the-mill loan officer.

5. Look for an expert guide to help you through the purchase

Ask the help of your expert Real Mortgage Consultant. As a first time home buyer, like any home buyer, you will benefit from the assistance of a professional.  Get Started by consulting Winner’s Mortgage for a real pre-approval and for assistance in choosing which programs will benefit you the most.

Loan Program Options for First Time Home Buyers

It would be incredibly challenging to purchase a property without professional assistance. And it is even more challenging for a first time home buyer even with the many benefits available.  Fortunately, with a Real Mortgage Consultant a first time home buyer can apply for financing credit programs with down payment assistance.

While there is a multitude of information on this site and other places online, your best first step is to contact your Real Mortgage Consultant for the real information that will apply in your situation.  And your best first step to do so is at Winner’s Mortgage Get Started page.  There you can complete a no obligation Client Questionnaire loan application form.  That will provide your Real Mortgage Consultant with the information needed to have a meaningful conversation with you.

Also see “First-time homebuyers who want to own their own home.”

Here is a selection of home loans for first time buyers. And as a first time home buyer, weigh the benefits and disadvantages of each mortgage program. Choose one that can benefit you the most with the assistance of your Real Mortgage Consultant at Winner’s Mortgage.

30-year Fixed-Rate Mortgage

The 30-year fixed-rate mortgage provides the most security against interest rate changes. And since the rate does not change over the term of the loan, it allows borrowers to plan and budget for the long-term.

Most first time home buyers regard this mortgage as one of the best loans for them. With fixed rates, borrowers can expect stable monthly principal and interest payments. Consequently, this mortgage is easier to handle and more predictable for first-time buyers.

Therefore, 30-year credit program can be an excellent choice for a first time home buyer. It offers the chance for a lower monthly payment and more flexibility in your monthly budget.  Discover more about the 30-year fixed rate mortgage here.

FHA Loan

The FHA loan is guaranteed by the Federal Housing Administration.  It requires a down payment minimum of 3.5 percent, with the flexibility of offering down payment assistance programs and closing cost assistance.

A first time home buyer also benefits from the mortgage program’s lenient qualifications. In addition, borrowers can possibly be approved for the loan even with a 500 to 579 credit score. With this credit score, additional requirements will include a higher down payment.

All FHA loans require Mortgage Insurance Premium (MIP), both upfront and monthly.

To consider the FHA loan, learn more about this mortgage here.

VA Loan

The VA loan is guaranteed by the U.S Department of Veterans Affairs and offered to the military community. So if you are a first time home buyer in need of assistance, the VA loan is an option if you have veteran’s eligibility.

Many buyers consider this to be one of the best home loans for first time buyers.  And qualified borrowers have no down payment and no monthly mortgage insurance. However, VA does charge a one-time upfront VA funding fee.  These features can be very helpful to first time home buyers.

If you think you meet the eligibility requirements as a veteran or qualified family member, the next step is to learn about the entire process. And learn more here about how this credit program can help you as a first time home buyer.

Native American Direct Loan

The Native American Direct Loan or NADL is a mortgage guaranteed by the Veteran Affairs. So if you are an eligible Native American veteran, consider the NADL mortgage.

Just like the VA loan, this credit mortgage is a strong consideration for a first time home buyer. And this is a good opportunity for buyers who want to have homes on federal trust land. The benefits include no mortgage insurance, no down payment, and low closing costs.

Compared to the VA loan though, the NADL is funded by Veteran Affairs. Through this mortgage, a first time home buyer receives many benefits. To learn more about the program, check here.

USDA Loan

The USDA loan is offered to borrowers belonging to low to medium-income households. Guaranteed by the Department of Agriculture, this mortgage promotes properties in rural areas.  This is one of the best home loans for first time buyers looking for a rural property.

Compared to other down payment assistance programs, it has strict qualifications. An eligible property should be in rural or suburban areas.

For more information on the USDA loan, see here.

Energy-efficient Mortgage (EEM)

A first time home buyer benefits from the energy-efficient mortgage. A type of FHA program, it combines property purchase and renovation at the same time. This is how this can serve as assistance for a first time home buyer.

EEM focuses on upgrades and renovations targeting energy efficiency. This is also known as green upgrades. It is backed by the VA or FHA programs. More information about this mortgage is available here.

FHA Section 203(k)

The FHA Section 203(k) loan is also known as a rehab loan. Another one of the best home loans for first time buyers is a home purchase and renovation loan rolled in one. If you have the image of your dream home set in your mind, this is the right loan to explore.

A first time home buyer looking for a property to fix up benefits from this. This loan program is an all-in-one offer to provide for a more streamlined renovation process.

If you are a first time home buyer in need of assistance, and you’re interested in a rehab home loan, get more information here.

Good Neighbor Next Door Program

The Good Neighbor Next Door Program offers first time home buyer assistance to:

  • Firefighters
  • Teachers
  • Law Enforcement Officers
  • Emergency Medical Technicians

This credit program fits a first time home buyer due to a possible 50 percent discount. Provided by the U.S. Department of Housing and Urban Development, it has standards you must follow. Learn more here.

Fannie Mae’s HomePath ReadyBuyer Program

Fannie Mae’s HomePath ReadyBuyer Program is a conventional mortgage. This program allows as little as a 3 percent down payment. It is one of Fannie Mae’s down payment assistance programs. Check it out here.

Freddie Mac also offers a similar loan program through its Freddie Mac Homesteps.  To learn more, go here.

Both loan programs allow a low down payment. However, both also require strong credit from the borrowers.

State and Local First-time Homebuyer Programs and Grants

First time home buyers can also benefit from state and local grants and programs. These offers will vary depending on the city, county, and state. These programs help with down payment and closing costs.

Many cities and states offer grants to attract new residents. Since programs vary from one state to another, the better option is to start with your Real Mortgage ConsultantGet Started here at Winner’s Mortgage to start your process.  Don’t gamble. Bet on a winner.

These are the best home loans for first time buyers. To get started, contact Winner’s Mortgage for gold standard assistance.

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