5 Popular First Home Mortgage Loan Programs

5 Popular First Home Mortgage Loan Programs

first home mortgage

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If you are thinking of buying your first home, then you know that there are plenty of decisions to make, and one of those is about your first home mortgage loan program. Which mortgage to get, what terms are best, which mortgage lenders to consider – it can get overwhelming pretty darn fast. However, doing your homework before you go in to talk about mortgages can be your best weapon.

What happens if you are a renter? First home mortgages are not only for those with financial advantages. Renters, those with little to no down payments, or others who may believe that they would never be able to get a loan could actually be eligible for certain types of loans. Below are the most common types of loans available for future home owners you should know about:

  1. Conventional loans: These are fixed rate loans that are not insured by the government, meaning you generally need a higher down payment, higher income, and overall healthier finances, to get one, but you also tend to get better terms.
  2. Adjustable rate mortgages: This type of first home mortgage has a lower initial interest rate for a fixed amount of time, after which that rate will reset, or adjust, typically every year. While the introductory rate may sound great, make sure you can handle the increases – which can very easily to higher than expected.
  3. FHA loans: The Federal Housing Administration (FHA) offers first home mortgage loan programs that are great for first time buyers and renters. They typically require a smaller down payment, have more relaxed credit requirements, and need lower upfront costs than a conventional loan. Of course, there are limits to how much you can borrow and you also need to meet eligibility requirements.
  4. VA Loans: The Department of Veterans’ Affairs (VA) guarantees first home mortgages made by qualified lenders, such as Shamrock Financial. This lets veterans and current service people get mortgages with more favorable terms, such as no down payment, and they tend to be easier to qualify for than conventional loans. You need to be accepted as being eligible, and there are mortgage maximums depending on location.
  5. USDA loans: You can also take advantage of some great mortgage options based on where you live. The United States Department of Agriculture (USDA) offers low- and middle-income households the chance to buy homes in designated areas. There are income limitations, but also easier credit and down payment requirements.

But it doesn’t stop there. You can find additional mortgage programs to help with buying or renovating a home, closing costs, and other expenses through your mortgage loan officer.

When searching for a mortgage, don’t settle for the first offer that comes along. Just like you would with your car, television, or living room couch, you need to do your research before you start your first home mortgage application. And your first stop should be at Shamrock Financial. We can tell you about all your available loan options, direct you to numerous home buying programs, and guide you towards the best first home mortgage possible. Be prepared and come away a satisfied home owner.

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