The Best Mortgage Option for a First Time Home Buyer
As a first-time home buyer, finding the right mortgage solution can be overwhelming. Because all mortgage loans differ from one another, it is best to work with an experienced mortgage firm that can help you select the best one.
Some factors to consider when choosing a mortgage option are:
- The size of your down payment
- Your credit scores
- Borrower traits that may restrict you from qualifying for certain loans
Popular first-time home buyer loan programs include:
- Conventional – sometimes referred to as conforming, Fannie Mae, or Freddie Mac, these loans usually have a fixed rate. Conventional mortgages tend to be a bit more restrictive when it comes to credit scores and debt to income ratios. Private mortgage insurance is required when a down payment is less than 20%.
- Federal Housing Administration (FHA) –FHA loans are often not as strict with credit requirements and allow a down payment as low as 3.5%. They are an excellent option for first-time home buyers.
- S. Department of Veterans Affairs (VA) – veterans and active duty personnel can get a home loan with favorable terms such as no down payment and in a lot of cases are easier to qualify for than a conventional loan.
- S. Department of Agriculture (USDA) – available in certain geographic locations, USDA loans do not require a down payment and offer low-interest rates.
As you can see, first-time home buyers have access to a variety of loan options. There are many other options as well that may fit your particular needs. Before shopping for your dream home, simplify the process by getting pre-qualified.
Take the First Step with Butler Mortgage
For over 25 years, Butler Mortgage has worked with both first-time and seasoned buyers wanting to own a home in Central Florida. Let us help find the best loan solution for you by calling 407-931-3800 or by filling out our free consultation form online.