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Loan Types for First-Time Homebuyers

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Which Home Loan Might be Right for you as a First-Time Homebuyer?

Understanding your home loan options and choosing the right mortgage is just as important as choosing the right home. We offer many home loans for first-time homebuyers, here are a few options:

30-Year Fixed-Rate Mortgage

  • Steady monthly payments over 30 years.
  • More affordable monthly payments due to longer term.

15-Year Fixed-Rate Mortgage

  • Shorter payment period for faster mortgage payoff.
  • Reduced interest payments over the loan's life.
  • Higher monthly payments due to shorter term.

VA Loan

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FHA Loan

Conventional Loan

Adjustable Rate Mortgage (ARM)

  • Interest rate adjusts to the market after a set period.
  • Initial savings with lower rate and monthly payments.
  • Riskier in a rising interest rate environment.
  • Suitable for disciplined savers with strong financial plans.

Interest-Only Loan

  • Interest-only payments for a set term (usually 5-10 years).
  • Lower monthly payments, potential tax benefits.
  • Risks include substantially higher payments later.

I CAN Mortgage

  • Customizable loan terms from 8 to 30 years.
  • Potentially pay off loan earlier, save on interest, build equity faster.

USDA Loan

Non-Qualified Mortgage (Non-QM) Loan

  • Alternative income verification for self-employed, retired, or those with fluctuating incomes.
  • Ideal for non-traditional borrowers.

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Buydown Loan

  • Pay an upfront fee to temporarily lower your interest rate and monthly payments.
  • Ease into your mortgage with more affordable initial payments.
  • Allows time to manage other expenses or upgrade your home.

 

Need more info? Read our first-time homebuyer guide or visit our first-time homebuyer resource center.