First Time Home Buyer Loan


First Time Home Buyer Loan

First Time Home Buyer Loan

A First Time Home Buyer Loan is considered to be a home or mortgage loan that is tailored to borrowers who are buying their first home. A First Time Home Buyer Loan is for individuals who have never been listed on a deed as an owner of real estate property. A First Time Home Buyer Loan will often allow borrowers a low down payment, reduced interest, limited fees, and possibly deferring some payments. A First Time Home Buyer Loan is usually offered at the federal level by the Federal Housing Administration (FHA) and by most states that have the know-how to offering First Time Home Buyer Loans. A First Time Home Buyer Loan program will usually deal with easier qualifying guidelines than many other mortgage loan types, such as allowing for higher debt ratios, lower credit scores and limited down payments.


A First Time Home Buyer Loan has some advantages and disadvantages. One advantage of a First Time Home Buyer Loan is since there are lower restrictions on these loans; it makes the First Home Buyer Loan ideal for first time home buyers especially if you don’t have a substantial amount of money saved for a down payment. Even if there is enough money saved up for a big down payment, the low interest rates that come with these types of loans are usually too good for anyone to pass up. A First Time Home Buyer Loan hopes to help borrowers achieve the American dream of owning a home who otherwise would not have the ability to buy a new home. One disadvantage of a first time home buyer loan is these types of loans may not be the best option for a first time home buyer. A first time home buyer loan will usually impose a limit on the cost of the property that you may be looking to buy. The loan limit may only be 60 to 75 percent of what a conventional loan would be. One other disadvantage with a first time home buyer loan is that the home you are looking to purchase must be your primary residence. If you are buying a home with the intention of renting it out, then you will probably not be accepted for these types of first time home buyer loans. Even with those disadvantages, a first time home buyer loan still might be the most attractive type of loan for you; ultimately it will depend on your financial situation and the type of home that you are wishing to buy.