Buying a home for the first time can be an expensive and a daunting experience. The wide variety of mortgage loans option available in the market can only confuse you. However, understanding the various options available to the first time buyers can help you get an affordable mortgage. Generally, the most popular mortgage type among the first time buyers is the Fixed Rate Mortgage (FRM) where the interest rate is fixed throughout the life of the loan. However, there are other options that you can explore and choose the best among them.

Types of mortgage for the first time buyer

There are some financial organizations that offer special programs for the first time buyers. The first time homebuyers can opt for the following mortgage types:

•    FHA loans – The Federal Housing Administration (FHA) insures mortgage which means that lenders will offer you loans at an affordable rate and at lower down payment. It is suitable for first time home buyers who are looking for a minimum down payment and also because you do not need to have a great credit score to qualify for such loans.
•    VA loans – It is a loan guaranteed by the U.S Department of Veterans Affairs (VA). It helps veterans to buy a property with no down payment. The Department of VA has recently increased the maximum guaranty amount for veteran home loans.
•    California Housing Financial Agency – They offer loans at low interest rates and various down payment assistance programs to the eligible first time buyers
•    Minnesota Housing Finance agency - They offer various mortgage loan programs for the moderate income first-time buyers. They also offer interest-free loans to help with down payment and closing costs.
•    HomePath Mortgage Financing – This is a special type of financing offered on Fannie Mae homes. They offer several benefits including low down payment and flexible mortgage terms. You can get a loan even if you have not so perfect credit score. You also do not need to pay any appraisal fees.
•    Ohio Housing Financial Agency (OHFA) – Ohio Housing Financial Agency’s First-Time Homebuyer Program offers mortgage for low and moderate-income homebuyers at competitive interest rates and fixed-rate loans. You simply need to comply with the minimum credit score.

Considering the variety of mortgage loans available in the market today, having proper information from the very beginning of the home buying process could help you out. So, educate yourself on the various loan options and the programs available for the first time buyers so that you can make the right choice.