Mortgage Programs for First Time Home Buyers

Buying a home, especially your first home, is a big deal. It’s exciting, but there's also a lot to think about. Equity Bank is here to help you navigate the home buying process. There are a variety of federal, regional, and local programs available to first-time home buyers. Learn more about a few of the programs to see if you may be eligible to benefit from them as a first-time home buyer.

FHA Loans

The Federal Housing Administration (FHA) offers government-backed loans designed with first time home buyers in mind. Although FHA loans are not strictly for first time buyers, this program is designed to help those with lower credit scores receive a loan. The FHA acts as an insurer, which means the lending party is taking on less risk allowing you, the buyer, to receive a better rate, and a down payment as low as 3.5%. FHA loans also allow for home sellers, builders and lenders to pay for up to 6% of the borrower’s closing costs, allowing them to offer you incentives to choose them. This loan is available in all 50 states.

VA, USDA and Other Loans

Educating yourself on first time home buyers programs could save money in the long termWhile FHA loans are great for first time buyers, there are other government backed programs that may be more suitable for you and your family. The U.S. Department of Veterans Affairs (VA) and U.S. Department of Agriculture (USDA) both offer loans with great incentives such as 0% down payments or little to no mortgage insurance requirements. The Department of Housing and Urban Development (HUD) also has a program called Good Neighbor Next Door. This program encourages revitalization in select areas by providing homes at reduced costs for first responders and teachers.

In addition to the various federal programs noted above, there are also many state and local incentives for first time home buyers. These programs can help subsidize some of your down payment and closing costs, or offer lower interest rates. Make sure to check out your local government and state websites to see if you qualify, or check with your Equity Bank Lending Specialist for more information.

Selecting a Program That’s Right for You

You are about to embark upon one of the most fulfilling journeys of your life. Taking the time now to educate yourself on first-time homebuyer programs could pay dividends in the long run. Though at times it can feel overwhelming, Equity Bank’s local lending specialists will be there to answer all your questions, and are dedicated to finding the right loan for you. 

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