The Helpful Real Estate Corner
Popular Types of First Time Home Buyer Loans
First time home buyers have a few options when it comes to loans. However, as a first time home buyer, you are probably new to home loan types and could use some guidance. Here are some of the more popular first time home buyer loans to consider. I partner with some of the best Mortgage teams that will work to get you the best finance options for your purchase.
30 Year Fixed Rate Mortgage
A 30 year fixed rate mortgage offers consistency specific to the interest rate of your loan. The rate will not change throughout the 30 year term of the loan, so it allows you to better estimate and plan your monthly mortgage expenses, which can be very helpful to the first time home buyer.
15 Year Fixed Rate Mortgage
A 15 year fixed rate mortgage offers the same stability as a 30 year fixed rate mortgage but just a shorter time period. If you can afford to pay more each month, a 15 year fixed rate mortgage often offers better interest rates, which can also be good for the first time home buyer.
A VA loan can be obtained without a down payment and does not require PMI (Private Mortgage Insurance), although it does require payment of a Guarantee Fee unless exempt. This is a great option for veterans who are purchasing their first home.
FHA loans give the flexibility of buying a home with a lower down payment and credit score, which is something first time home buyers can benefit from.