What types of programs are available for first time homebuyers and how do I qualify are a couple of the most common questions asked by first time homebuyers. As a first time homebuyer there are many different programs that will be available to you. Read through the entire page to explore some of your options and email me at msearing@mayfairmortgage.com if you should have any questions about first time homebuyer programs.

FHA is the most popular first time home buyer program. FHA requires a 3% down payment on your new home. However there are down payment gift programs available that are allowed by FHA. While FHA does not look directly at credit score to issue a loan approval they will expect borrowers to have a clean credit profile that includes timely payments and no outstanding judgments or collections

Conforming lenders have come up with some very similar programs to FHA's 3% down program known as My Community, Home Possible, and Flex programs to name a few. These programs were developed to assist people, especially first time homebuyers, to be able to afford to buy a home easier. These are not just first time homebuyer programs, but programs that are available for anyone buying a home as long as you meet the program requirements.

If you are a Veteran, you can use your VA Certificate to obtain a VA loan. You may want to contact your local VA office to obtain your Certificate of Eligibilty. You can then see if you qualify for 100% financing through the VA.

Even though you are a first time homebuyer there are still several loan programs available. Fannie Mae offers first time homebuyers programs such as Mycommunity mortgage. These programs require little or no down payment and can have low interest rates and payments.

Certain states (such as Tennessee's THDA) offer a state sponsored mortgage program that is much like FHA but contributes the 3% required down payment. Such programs are not credit score driven, but do require full income and asset documentation and an FHA approved appraisal.

 

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