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Loans for First Time Home Buyers

Home Ready Loans

Home Ready (Fanniemae) loans are conventional loan programs that offer low down payments and reduced mortgage insurance to home buyers or those wishing to refinance.

Ideal for borrowers who:

  • Want conventional financing with low down payments

Features of a Home Ready mortgages

  • Down payments as low as 3%
  • Available on one and two unit properties
  • Reduced mortgage insurance rates
  • Income limits in some areas, check with a mortgage expert
  • Available to first time or repeat buyers
  • Home buyer education required
  • Interest rates better than traditional conventional loans

Federal Housing Administration (FHA) Loans

The Federal Housing Administration (FHA) program offers government-backed home loans that are ideal for low and moderate income families, helping them achieve the dream of private homeownership.

FHA financing is available for purchasing a home or for refinancing your current home loan. FHA financing offers a fixed-rate option - designed for steady monthly payments - or an adjustable rate option (ARM) which helps keep the initial payment and rate at a minimum.

Ideal for borrowers who:

  • Are First time homebuyers
  • Have a higher debt ratio
  • Are Existing homeowners who want to eventually sell, using assumable financing at a lower than market rate, attracting more buyers
  • Have limited funds for down payment and closing costs
  • Have less than perfect credit
  • Are using down payment assistance and/or grant money

Additional Features of FHA Financing

  • Low down payment — for as little as 3.5%
  • Payment period that extends up to 30 years
  • Higher seller contributions
  • Qualifying guidelines that are less conservative than conventional financing
  • Interest may be tax deductible

USDA Rural Development (RD) Loans

The United States Department of Agriculture Rural Development (RD) program offers a 100% financed mortgage for people who meet the minimum requirements, and want to live in a rural setting or small town.

RD loans are primarily used to help low-income individuals or households purchase homes in rural areas. These loans can be used to build, repair, or renovate homes. Rural Development loans are only available for properties located in designated areas and for those within specified income limits.

Ideal for borrowers who:

  • Have limited funds for closing
  • Want to keep mortgage payments and mortgage insurance low
  • Have low to moderate income
  • Want to purchase in a rural area

Features of a RD mortgage

  • 100% financing possible
  • Not limited to first time homebuyers
  • Interest paid may be tax deductible
  • Competitive 30 year fixed rates
  • Less funds required for closing
  • Lower mortgage insurance than other financing options
  • Available for low-to-moderate income households

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