First Time Home Buyer

First time home buyer loans allow buyers to get into a house more easily. These programs vary depending on where they are offered.  Generally, first time home buyer loans give financial assistance to qualified borrowers, and might help in the following ways:

  • Subsidize interest costs
  • Allow very low (or no) down payment
  • Offer grants
  • Forgive loans
  • Defer payments
  • Limit fees that lenders are allowed to charge

Watch this quick video of Craig from AMD, as he discusses the qualifications a first time buyer needs:

Who Gets First Time Home Buyer Loans?

Individuals who have never previously owned a home are good candidates. Also, there are some programs, which offer first time home buyer loans to people who have not owned a home within the last three years.

Common Home Loan Options for the First Time Buyer 

FHA Loan

Conventional Rate

VA Loans

First Time Home Buyer Loan Restrictions

Just because you are a first time home buyer does not mean you must or you should use a first time home buyer loan. These programs can have restrictions and strings attached.  For example:

  • Many programs put a dollar limit on the property you would like to buying
  • You must live in the home as your primary residence, therefore rentals are excluded
  • It is likely that the property must meet some physical requirements, be in good condition and free from any safety hazards (such as lead-based paint, for example)
  • You might have to pay recapture taxes for some of the benefits you receive
  • You may be limited to a short list of loan types (only 30 year fixed rate mortgages for example)

The best thing to do is to explore your options. Many first time home buyers get are unprepared and uninformed, which can lead to confusion and frustration. Educate yourself, organize your paperwork, and utilize the resources available and the home buying experience can be less stressful and more enjoyable.  And we are certainly here to help!

For more information on First Time Home Buyer Loans, please feel free to contact us by clicking here, email us at amdirect@alliedmg.com or call: (800)862.5543.