Lend Me Money
Home Mortgage Loans
Best Home Mortgages for First-Time Buyers
First-time buyers play an essential role in the U.S. housing market. Likewise, their significance in helping to strengthen the overall national economy cannot be ignored.
First-time buyers are crucial in bringing an ongoing flow of fresh demand into the U.S. housing markets. Without them, the national economy would continue to see an unstoppable downward plunge in these markets, which is the primary reason for the U.S. Government to place all first-time home buyers on a preferential platform.
First-time buyers get the following advantages that are otherwise not available to other buyers from the government.
- Automatic rate discounts for their mortgages
- Options for availing low-down payment mortgages
- Reduced insurance premiums on their mortgages
To help maintain a steady affordability ratio for new homes, first-time buyers receive cash grants and other hefty tax credits from the government.
Conventional 97 Mortgages
Best suited to: Home buyers that have above average incomes and higher credit scores
Where to apply: Mortgage Companies, Local Credit Unions, and Retail Banks
Conventional 97 Mortgages are a low-down payment type of conventional loans that are backed up by Fannie Mae. First-time buyers are allowed to make a 3% down payment for their single family homes, as their principal residences.
Conventional 97 Mortgages require home buyers to meet the eligibility standards set for the maximum sized conventional loans, minimum debt-to-income ratios and higher credit scores. Buyers are required to attend the HUD approved homeownership education course prior to closing.
Home Ready Loans
Best suited to: Home buyers that have low- to moderate incomes and have greater preference for the 30-year fixed-rate mortgage loans
Where to apply: Mortgage Companies, Local Credit Unions, and Retail Banks
HomeReady loans are a 3% down payment, readily affordable mortgage programs that are backed up by Fannie Mae. First-time buyers that have low- to moderate incomes, and credit scores that range from 620 to higher, are eligible for these loans. Fannie Mae further helps broader incomes to qualify for these loans.
Home buyers that use HomeReady loans get discounts of up to 1.75 percentage points on their mortgage rates, as well as discounts on their private mortgage insurance (PMI) premiums. The programs are exclusively available for 30-year fixed-rate mortgages.
HomeReady loans are for buyers that use their homes for primary residential purposes, with 30-year fixed-rate mortgages. Buyers are required to attend the HUD approved homeownership education course prior to closing.
Home Possible Loans
Best suited to: Home buyers that have low- to moderate incomes and above average credit scores
Where to apply: Mortgage Companies, Local Credit Unions, and Retail Banks
Home Possible Loans are readily affordable mortgage programs that are backed up by Freddie Mac. These loans show many similarities with the HomeReady loan types. First-time buyers that have low- to moderate incomes, and credit scores that start from a minimum of 660 are eligible for these loans, upon making a 3% down payment on their homes. Buyers are required to attend the HUD approved homeownership education course prior to closing.
Home buyers that use Home Possible Loans get discounts of up to 1.75 percentage points on their mortgage rates, as well as discounts on their private mortgage insurance (PMI) premiums. These programs are available for all 10- to 30-year fixed-rate mortgages.
Home Possible Loans are for buyers that use their homes for primary residential purposes.
Our lendmemoney.com affiliate lenders are here to highlight the best home loans that are available today for first-time buyers, help them choose the options that are best for them, and to get first-time buyers quickly approved, through their distinct fast-track methods.
Lend Me Money
Home Mortgage Loans
Our Two Best Home Mortgage Loans
FHA Mortgages
Best suited to: Home buyers that have low credit scores, moderate to high incomes, and properties that are multi-units
Where to apply: Almost all mortgage companies and retail banks, plus some local credit unions
FHA mortgages are low-down payment loans that are Federal Housing Administration (FHA) insured. First-time buyers can benefit from these catch-all loan programs, with particular relevance for those that are ineligible for most other low- and no-down payment programs.
FHA mortgages offer
- Down Payment: minimum 3.5%
- Credit Score: 500 or higher
- Income Sources: non-traditional and broader
Unlike most other low-down payment options, FHA mortgages have no income, location, or profession restrictions for their customers.
For the 2-4 unit homes, the rates for FHA mortgage are highly competitive. Almost all buyers need to pay the insurance premiums for the entire term of their respective FHA mortgages.
FHA mortgages are for buyers that use their homes for primary residential purposes. These programs offer buyers the complete range of fixed- and adjustable-rate mortgages (ARM). Moreover, FHA mortgages are used by over 10% of all first-time buyers.
USDA Mortgages
Best suited to: Home buyers from the suburbs as well as rural regions of the U.S.
Where to apply: Almost all retail banks, plus some local credit unions and mortgage companies
As no-down payment loans, the USDA mortgages are secured by a guarantee issued by the U.S. Department of Agriculture. These loans are offered to buyers in the low-density parts of the country, commonly defined as small communities with a maximum of around 500 people to each square mile. A huge 97% of the total U.S. land mass, that includes a third of the country’s population, lies within the mortgage-eligibility limits of the USDA.
USDA mortgages offer
- 100% financing, without any down payment requirements
- Credit Scores: 580 or higher
- Insurance Premiums: at reduced rates
With full support and backing of the USDA, mortgage lenders can offer these mortgage loans at the lowest possible interest rates, especially when compared to the Conventional 97, the FHA, and the VA mortgages.
USDA mortgages are for buyers that use them to purchase single-family homes for primary residential purposes, with 30-year fixed-rate mortgages only. Some restrictions do apply.
Our lendmemoney.com affiliate lenders are here to highlight the best home loans that are available in the market today, help you choose the options that are best for you, and to get you quickly approved through their distinct fast-track methods.
Lend Me Money
Home Mortgage Loans
Our Next Two Best Home Mortgage Loans
VA Loans
Best suited to: Home buyers that either have current or previous military experience
Where to apply: Almost all retail banks, mortgage companies, and local credit unions
With no down payment or mortgage insurance requirements, VA mortgages are principally tailored to meet the needs of on-duty active military personnel, veterans, National Guard members and Reserves, including their surviving spouses.
The rates of VA mortgages are generally lower than those of Conventional 97 and FHA mortgages, as these loans are guaranteed by the Department of Veteran Affairs against loss.
Eligibility Requirements for VA Mortgages
- Credit Scores: 580 or higher
- Requirements: minimum military service limits
- Availability of Residual Income after payment of monthly obligations
VA mortgages further require that buyers live in these homes as their primary residences and that their homes are structurally sound, safe to live in, and sanitary.
These programs offer buyers the complete range of fixed- and adjustable-rate mortgages (ARM).
Fannie Mae HomePath Ready Buyer Mortgages
suited to: Buyers that fall in the low- or moderate-income range and those that want to buy discounted homes on “as-is” terms
Where to apply: Some retail banks, mortgage companies, and local credit unions
These HomePath Mortgages are the flagship financing programs offered by Fannie Mae to boost distressed home sales. Through this program, home buyers are allowed to purchase foreclosure homes at significantly discounted values, especially when you compare them with their current market prices.
Usually, buyers can purchase these homes on “as-is” terms, which means that some of these homes may have potential minor or even some major defects. To counter such risks, Fannie Mae offers the Low- and moderate-income buyers a contribution of 3% towards their closing costs, in addition to buydowns on interest rates, as well as an additional $500 cash benefit.
Fannie Mae’s HomePath mortgages allow buyers to finance their purchases with any chosen home mortgage programs, available on fixed- and adjustable-rate mortgage (ARM) terms.
Our lendmemoney.com affiliate lenders are here to highlight the best home loans that are available in the market today, help you choose the options that are best for you, and to get you quickly approved through their distinct fast-track methods.