The Best Mortgage for First Time Home Buyers

Here’s a question we get a lot: “What’s the best mortgage for first time home buyers?”

We’ve made a name helping our neighbors across Fall River and Bristol County, MA become homeowners for the first time ever. It’s always a great feeling to get the keys in a client’s hand. So, we know a thing or two about what first-time buyers are looking for when receiving their first home loan.

Are you ready to discover which loan can work best for you? Great! Let’s begin.

The Federal Housing Authority (FHA) loan

An FHA loan is a great place for any first-time buyer to start their search for a mortgage.

FHA loans can be easier to qualify for, plus they come with other big advantages:

Low-interest rates for lower monthly payments
A low down payment of 3.5% means a higher chance of approval

FHA loans can be attractive to first-time buyers who are in the process of building or repairing their credit. The program has one of the lowest eligibility requirements for credit scores, which puts pre-approval within reach for many.

Our local mortgage brokers work with FHA loans regularly. If you’re wondering if an FHA home loan is right for you, get in touch to discuss your options.

Veterans Administration (VA) loan

A VA home loan exists to help military service members, veterans, or spouses of veterans, become homeowners.

VA loans offer our heroes competitive financing options, which has awesome benefits like:

$0 down payment
Low rates for smaller monthly payments
Lower closing costs

Like an FHA home loan, a VA loan also accepts lower credit scores when applying. Check with a mortgage professional for specifics about credit and income requirements.

Your local mortgage broker can explain whether this is the best mortgage for first time home buyers like you.

United States Department of Agriculture (USDA) loan

Are you ready to escape the city life? If so, you should consider a USDA loan.

There are great benefits to getting a USDA loan:

Low-interest rates for smaller monthly payments
No down payment
Affordable mortgage insurance

If you’re looking to live in a less populated area, a USDA home loan could work for you.

Please be aware that the USDA determines eligibility based on your county’s income requirements. The good news? The income eligibility limits for the USDA home loans have been raised to include even more borrowers, so you may now qualify!

Click here to check the income eligibility requirements for your town in Massachusetts.

The Conventional 97 loan

This one pretty much lives up to its name.

Conventional 97 is a straightforward home loan that offers real benefits to buyers. Perks include the ability to cancel mortgage insurance after the borrower has earned enough equity (value) in their property. There’s also no upfront insurance fee, which saves you money.

However, please note that there is a minimum credit score of 620 to qualify for a Conventional 97. This means that having a higher credit score is necessary.

Speak with a mortgage broker about the pros and cons of a Conventional 97 loan.

You have other options, too

There’s a variety of statewide and municipal programs to assist first time home buyers with the purchase of their new home.

Some cities and towns across Massachusetts offer programs with no-down payments to attract new buyers into their communities. You can also check out state and local housing agencies that may offer incentives, loans, and even grants (free money!) to first time buyers looking to settle down in the Bay State.

Remember, the best mortgage for first time home buyers is the one that meets your needs. Speak with a local mortgage broker who can help you sort through it all.

Still looking for the best mortgage for first time home buyers?

There’s no shortage of options to help you achieve your dream of owning a home. With federal, state, and even city programs designed to help first-time buyers, your path to homeownership is possible.

We’re local mortgage brokers who know Fall River and Bristol County just as well as we know mortgages—and that’s saying something! Everyone at Troy City Mortgage wants one thing—and that’s to tell you that you’re approved!

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David Pereira