Common Mortgages for First Time Homebuyers
Shopping for a mortgage for your first home might seem daunting. Luckily though, there are numerous first-time homebuyer programs that can help you get your foot in the homeownership door.
Maximum financing and flexibility for first time homebuyers, with as little as 3% down.
If you're active duty military, a veteran or an eligible family member of a military veteran, you may qualify for a Veterans Affairs loan.
The VA Mortgage is a government-backed loan product offering 100% financing of the reasonable value of the property, with less restrictive qualifying terms than conventional programs.
USDA-backed loans offer qualifying low-to- moderate income borrowers the option of no down payment when they buy in a designated rural area.
Should I Rent or Buy?
It takes more than looking at your monthly mortgage payment to answer this question. Loanready's rent vs. buy calculator can help you calculate the total cost of buying a home versus the cost of renting over time. Find out what makes sense for you.
- How Much House Can I Afford?
While everyone's financial situation is different, you should aim to keep your total mortgage payment — including property taxes and insurance — between 25% and 43% of your monthly take-home pay.
- How Much Do I Need for a Down Payment?
Despite popular belief, you don't need a 20% down payment. A large down payment has its benefits, but we have loan options that let you put as little as 3% down and 0% for eligible Veterans.
- What Other Expenses Will I Have?
You'll likely need money for closing costs — typically 2% to 5% of the purchase price — moving expenses, repairs and a cushion in case of emergencies. We recommend staying in your comfort zone and we can help you find what fits.
- Is It Cheaper to Buy a House or Rent?
It depends — every housing market has different factors to consider. Plus, the answer can vary with your budget, goals and plans for the future. Check out our Rent vs Buy Calculator or contact a loan officer for help deciding what's best for your situation.