Buying a home for the first-time can be intimidating – not only have to choose your neighborhood, your home’s features, and nearby school districts – then comes the task of being qualified for your first home loan.
Making a smart decision around the purchase of your first home can feel overwhelming, but it doesn’t have to be. Your trusted advisors at PrimeWay Federal Credit Union are happy to help you answer any questions you may have about your approaching home loan, and which of those loans might be best for your first time purchase.
In the meantime, here’s a little information on some of the most common loans first-time home buyers use, and some tips for deciding on what loan term might work best for you.
One of the most popular mortgage loans, FHA (Federal Housing Administration) loans are available to all home buyers, not just first-time buyers. One reason FHA loans are a good option for first-time buyers is because of its low down-payment.
So if you’re buying a home for the first time, and haven’t saved for a large down-payment, you may be eligible for an FHA loan for as low as 3.5% of your home’s purchase price. Borrowers with a history of bankruptcy or foreclosures may also be eligible for an FHA loan.
There are several types of FHA mortgage loans:
Not sure what the difference in payments will be? You can compare payments using our mortgage payment calculator.