Best Mortgage Loans For First Time Home Buyers

Take into account everything from the mortgage option, repayment period, and every single cost that comes along. Even though home purchasing for the first time can be intimidating, with all the information and research available, it won’t become a big hassle. We have prepared this piece of information that has explained everything related to the home buying procedure, including mortgage loans for first time buyers. Keep reading and we bet by the end of this article you will be able to make an informed decision for home buying. So first things first.

Types of mortgage options for first time buyers

• FHA Loans: Federal Housing Administration is considered to be one of the famous mortgage loans for first time home buyers and others too. The main reason behind the same is homebuyers get an opportunity to acquire this loan with a desired low down payment. Therefore, if you are someone who is planning to get hold of the desired home anytime soon, and do not have enough funds for a down payment, this is the right mortgage for you. According to the experts, a homebuyer is eligible for this mortgage for as low as 3.5 percent of the rate of the property. People who have a history of bankruptcy can also apply for this mortgage and face no inconvenience. Under FHA mortgage loans, there are two categories.

1. Fixed Rate: Because the rate of interest stays the same for the entire period, this is one mortgage option that has gained popularity worldwide. A homeowner clearly knows what his/her monthly payment will be and repaying is simple.

2. Adjustable Rate: This mortgage option is apt for homeowners who want to obtain a low rate of interest but want to repay within a short period of time. This means more monthly payments and less interest rates.

• VA Home Loans: A homebuyer is eligible for this mortgage option if they are or have been serving the military. The VA will assist veterans and service members by offering a loan option that will work wonders for them. A few loan types fall under this category.

1. Purchase Loan: This is a loan option that is a thousand times better than obtaining a loan option from a private lender.

2. Native American Direct Loan Program: If you are someone married to a Native American or are one, you are eligible for this loan option.

3. Cash Out Refinance Loan: If you are someone who wants to make use of the home equity in order to get rid of all the current debt, this is a suitable mortgage option for you. 

Take into account the loan repayment time

As a first time home buyer, it is imperative that you find out a suitable loan repayment period. By a suitable loan, we mean one that meets your financial needs and does not affect your pocket. Even if you are in the middle of “when to refinance your home”, know that considering the loan repayment period plays a crucial role in home buying.