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
- Guaranteed by the VA for veterans or surviving spouses.
- No down payment is required and no private mortgage insurance (PMI)
- Guarantee Fee may apply.
FHA Loan
- Popular among first-time buyers.
- Lower down payment and credit score requirements.
- Insured by the Federal Housing Administration.
Conventional Loan
- Fewer restrictions than government-guaranteed loans.
- Down payments as low as 3%.
- No mortgage insurance with 20% down payment.
- More economical for buyers with strong credit.
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
- No down payment is required.
- For eligible rural and suburban areas.
Non-Qualified Mortgage (Non-QM) Loan
- Alternative income verification for self-employed, retired, or those with fluctuating incomes.
- Ideal for non-traditional borrowers.
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.