Best Mortgage Loan for First-Time Home Buyers

Getting a mortgage is a vital step to buying your first home, and there are several factors to consider for choosing the best mortgage plan. Though there are several financing options for first-time home buyers, the best step is to research the basics of property financing, as this will save you more time and money. 

However, the process can be stressful and time-consuming, especially if you’re inexperienced with mortgage loans. 

This is where a reliable team like our Moreira Team comes in. We’re a company that has a team of experienced mortgage brokers and lenders to cater to your financial needs. We will help you find the best loan that suits your needs. We hold special consultation sessions for our clients and ensure the whole process is seamless and stress-free. We also shop your loan with numerous lenders and banks to ensure we can get you the best deal.

So even if you have little or no savings, our loan officers can guide you in your options. With our experience, we can introduce you to a particular first-time home buyer program that offers cash assistance and get you a home in record time.

first-time homebuyer tips

Best Mortgage Loans for First-Time Home Buyers

Below are the first-time home buyer loan types:

  • FHA loans

The Federal Housing Administration guarantees FHA loans; this doesn’t mean you’re guaranteed to be approved. However, the FHA will refund the mortgage lender if the borrower fails to meet the mortgage loan. FHA loan benefits for first-time home buyers include a minimum down payment of 3.5%, low-interest rates, and low credit scores. And according to the FHA guidelines, you don’t have to earn so much to qualify.

  • The Conventional 97 loan

The conventional 97 is a good choice if you’re searching for a “first-time home buyer loans no money” down payment option for your home loan. For conventional loans, you need only a 3% down payment to qualify. However, they do require mortgage insurance annually, but you can cancel your private mortgage insurance after gathering enough equity in your home. 

Benefits of conventional loans include 3% down payments, mortgage insurance is cancellable, no upfront insurance fee, and a minimum 620 credit score. Conventional loans are not a good choice if your credit is poor.

  • Fannie Mae HomeReady and Freddie Mac Home Possible

These are two types of conventional mortgage that allows you to purchase a home without too much cash upfront. These types of mortgages require a 3% down payment. The benefits of these loans include only a 3% down required, private mortgage insurance can be canceled, roommate income can help qualify, and credit scores starting at 620 accepted

Conclusion

As a first-time home buyer, looking for the best mortgage option can be difficult. You must devote time to choosing the house you can afford and then source for finance accordingly. 

However, when you’re guided by a good mortgage broker or mortgage banker, it’d be easier to navigate through the different mortgage loan programs. Employing a mortgage broker is the best way to get the best mortgage loan that suits your needs.