First-Time Homebuyer Programs

Building your own house is but a dream. Every individual, whether as a single professional, a couple starting out, or a family, always dreams of having their own home. It is a dream that we all want to get started on as early as possible.

However, buying a home requires a lot of work and research. One cannot just buy the first house that they see because first of all, houses are expensive, and you have to live with that decision, somewhat literally.

With that in mind, if you are in the market for a new house, the first thing that you should consider after finding your dream house is financing. The following are the first-time homebuyer programs that you should think of:

FHA Home Loan Program

This home loan program uses a mortgage mechanism and has a downpayment requirement where the applicant’s down payment depends on his FICO score. Yes, your FICO score is definitely pivotal for this kind of loan.

What are the requirements?

In order to qualify for the program, the applicant must comply with the following requirements:

how-to-apply for-an-fha-loan
  • For those with a FICO score ranging from 500-579, the downpayment is 10% of the total property value.
  • For those with a FICO score of more than 580, the downpayment is 3.5%.
  • Individual applicants should also be ready with the following documents:
    • Tax returns;
    • Bank statements W2’s; and
    • Paycheck stubs.
  • The loan is also limited for use of primary residence only.
  • Payment of a Mortgage insurance Premium (MIP) is required.
  • The applicant must also have steady income.

    US Department of Agriculture (USDA) Loans

    The U.S. Department of Agriculture is the kind of loan available for low-to-moderate income home buyers. It is available only in rural areas of the country.This loan was made specifically for those with low to moderate income but contrary to what people believe, almost 97% of the country is in an eligible USDA location. The best part of this loan is that unlike the FHA loan, there is no down payment required, and the MIP is almost negligible to suit the needs to the low income family.

    HUD First Time Home Buyer Programs

    Every state would have its own programs for its citizens, do your research and look at the State’s program that applies to you. There are lots to choose from so you should not worry about this.

    Veterans Administration (VA) Loans

    A home loan program that applies for active and retired veterans, VA loans are considered as the best and cheapest available mortgage available. It is perfect for first time buyers as long as they qualify for it.

    Native American Direct Loan

    A second kind of VA loan is the Native American Direct Loan (NADL). It allows for Native Americans who has served the country to apply for a home loan on a federally recognized trust.

    What are the Eligibility Requirements?

    In order to be eligible, the applicant must be able to show the following:

    • A valid Certificate of Eligibility from the Veterans Administration;
    • The Property must reside on a federally recognized trust;
    • The property must be used primarily for residence purposes; and
    • The credit score of the applicant should be at least 640.


There are other programs for first time homebuyers, but the ones mentioned above are on top because the qualifications are easy to comply with, you either qualify or not.

For those who think they may not qualify for the programs mentioned, there are other programs such as the following:

  • HomeReady HomePath Mortgage - those who are willing to take a first time buyer education course qualifies for the program;
  • HUD Dollar Home Program - the home loan program perfect for those who are patient. This applies to foreclosed homes in the HUD website for more than six months;
  • Good Neighbor Next Door Program - the home loan program for firefighters, teachers, and police where they are given 50% off the price; and
  • Conventional 97% LTV 3% Down Program - the home loan program where the down payment is not more than 3% of the property value.

Now that you know the top first-time homebuyer programs that you can apply for, make sure that you ask a finance professional to help you process your documents better. It is easy to do things on your own and maybe correct mistakes along the way but it is easier to do things right the first time and save yourself from heartache. A mortgage professional can help you get there.

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This is should be a prospective customer's number one call to action, e.g., requesting a quote or perusing your product catalog.