Your Options


The Federal Housing Administration (FHA) offers loans with as little as a 3.5% down payment, which are pretty popular among many first-time homebuyers. They aren't as strict on requirements like credit, which makes it easier to qualify. They do require mortgage insurance which will increase the monthly payment. Another great plus: If a family member wants to offer you money for your downpayment as a gift, this loans allows for it.  

Available Options:
ARM: 5 year                 
Fixed-Rate: 15, 25, 30-year

Conventional Home Loan

If you have managed your credit wisely, then you may qualify for a conventional mortgage with a lower interest rate. You can pay as little as 3% for your down payment, and once you've paid 20% of your loan (AKA 80% Loan-To-Value), your mortgage insurance (which increases your monthly payment) goes away. It’s time to reap the rewards of your financial foresight!  

Available Options:
ARM: 5, 7 and 10-year   
Fixed-Rate: 10- to 30-year

VA Loan

The Veterans Administration (VA) offers qualified veterans, active duty military and your family members many benefits to get into your first home. First-time homebuyers may not need a down payment, allowing you to get into a home without years of saving. You're also exempt from mortgage insurance, lowering your monthly payment. And lastly, Basic Allowance for Housing (BAH) can be counted toward income qualifications, increasing the amount of income you claim. 

 Available Options:
 ARM: 5-year                 
 Fixed-Rate: 15, 25, 30-year


A United States Department of Agriculture (USDA) rural loan won’t limit your home choices to a farm. In some cases, properties zoned “rural” are just a few miles away from the nearest city. USDA loans don't require a down payment and offers easier credit qualification, which makes them very attractive to first-time homebuyers. You can save your cash to furnish your first home, save for life's expenses, etc. 

 Available Options:
Fixed-Rate: 30-year
Income and property restrictions apply. 

Financial Assistance Programs

States across the country all have different grant programs to help homebuyers get into new homes. Some states also have great incentives to help first-time homebuyers with their down payments. Often, states set aside grant money to help new homeowners with the upfront costs of buying a home.* 

Check with a mortgage loan originator to see if your state offers down payment assistance.
*Income and property restrictions apply. 

Buy a Fixer Upper

Some people can’t resist the allure of a fixer-upper, even if it's your first home. They're charming, cute and you can make them your own without having to build from the ground up. A Federal Housing Administration Rehabilitation loan (FHA 203k) makes it easy for borrowers to afford a new home—and its renovations.

 Available Option:
 Fixed-Rate: 30-year 

I Need a Jumbo Mortgage.

If you're buying in a high-cost area or building a custom home, you may need a jumbo loan. These mortgages are available to qualifying borrowers who want to finance properties from $417,000 up to $3 million. Jumbos come with flexible rates and terms. 

 Available Options:
 ARM: 5, 7, 10-year                 
 Fixed-Rate: 15, 30-year