Mortgage Options for First-Time Home Buyers

Buying your first home is exciting, but making sense of first-time buyer mortgage options can be overwhelming. Let the experts from Cape Coral Mortgage walk you through some of the programs that can make it possible for you to become a homeowner.

The process of buying a home can be intimidating. Finding a home within your budget and making an offer is only the first step. Securing a mortgage with a monthly payment you can afford means navigating the down payment, closing costs, insurance, and other factors that might have you feeling like home ownership is out of reach.

Thankfully, first-time homebuyers have access to options that make mortgages accessible.

Down Payment Assistance

The first hurdle many first-time homebuyers face is the down payment. The standard down payment is at least 20% of the purchase price, but if you don’t have that much cash saved, you have options. Most first- time buyer mortgage programs accept down payment assistance, which may include loans, grants, or a loan program with a lower down payment requirement.

First-Time Buyer Best Mortgage Programs

Even home buyers with poor credit or who do not have a large down payment may qualify for a government-backed loan, making them some of the first-time buyer best mortgage options. Lenders are more willing to approve these loans because the federal government guarantees the loan. The three government mortgage programs are:

Fair Housing Administration (FHA) Loans

These loans require a down payment of 3.5-10%, depending on your credit score, and private mortgage insurance. PMI payments can be a part of the monthly mortgage payments.

Veteran’s Administration (VA) Loans

VA loans allow borrowers to take out larger mortgages and may not require a down payment or mortgage insurance. Only service members, veterans, and surviving spouses qualify.

USDA Loans

Low-income buyers in certain rural and suburban regions may qualify for a low or zero-interest USDA mortgage, which may not require a down payment.

Conventional Home Loans

First-time homebuyers who don’t qualify for a government program may still secure a conventional home loan. Many lenders offer products for first-time buyers with affordable interest rates, lower down payment requirements, and other features that put home ownership within reach.

Fannie Mae and Freddie Mac, the leading mortgage lenders in the country, offer several first-time buyer mortgage options, including programs for people with low credit scores. The Fannie Mae HomePath Ready Buyer Program helps you purchase a foreclosed home to live in with as little as 3% down. The Freddie Mac Home Possible Loan is also a first-time home buyer best mortgage option, with down payments as low as 3%.

Florida home buyers may also qualify for state-specific programs that offer down payment and closing cost assistance, reduced interest rates, tax credits, and more.

Let Cape Coral Mortgage Help You Buy Your First Home

When you need help making sense of first-time buyer mortgage options and securing a loan for your new home, call the experts at Cape Coral Mortgage. Our experienced professionals can help you find the loan program that best suits your needs. Call (239) 540-5555 for an appointment or start your pre-application online.

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Cape Coral Mortgage has been in Florida for 20 years with over 100 years of combined experience in the mortgage industry. Our team has vast experience in all phases of mortgage lending.

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