Understanding the Key Takeaways of a First Time Home Owner Loan in the US

1. Understanding the Key Takeaways of a First Time Home Owner Loan in the US Let’s first understand the six most important types of first-time home buyer loans and mortgages here in the US, and in its 50 odd states. To begin with, it is FHA loans, VA loans, USDA loans, home renovation loans, Fannie Mae and Freddie Mac backed conventional loans, and state first-time home buyer programs. For FHA loans backed by the Federal Housing Administration, you require a 3.5% down payment, whereas there is NO down payment for VA loans for all serving personnel, veterans, and their spouses. In case of USDA loans, individual borrowers get finance on 0% down payment for buying rural properties in the countryside. Whereas for Fannie Mae & Freddie Mae backed conventional mortgages, you pay just a 3% down. And, if you’re buying a house and renovating it as per your needs, you can do it with one single loan. So, if you’re residing in the US, you can choose an agency like “Affordable Interest Mortgage” that offers low interest home loans on flexible repayment terms for all first-time home buyers. Knowing the Important Aspects of a First Time Home Buyer Program Well, when you apply for a first time home owners loan in the US, the bank or financial institution (lender) will evaluate your credit score, credit history and the ability to repay the principal loan amount, along with the interest & fees, based on your income, debts and assets. As a borrower, you can choose between a fixed rate or floating rate mortgage home loan, the time to repay and the amount of down payment. Here, you can avail the services of an online loan calculator from the lender. FYI, an approval from the lender totally depends upon your eligibility for an FHA, USDA, VA or any other type of conventional home loan, if you’re a new home buyer. As a first-time home owner or property buyer, you may receive the benefits of special programs that allow you to get discounted mortgage loans, with NO down payment. But, that depends upon lenders. As a first time home buyer, you should not have owned any residence for the last 3 years, and you must show proof of income for a minimum of 2 years. These were some of the key aspects.