A first time home buyer budget is often pretty sparse. From down payments to monthly bills, many people buying their first home have very little cash saved or coming into their bank accounts. But this doesn't mean you have to stay in your renters nightmare. You can find a home in your price range, save money on your monthly mortgage payment and find a low-to-no down payment option. Here are 5 first time home buyer loans to consider.
  1. The zero-down payment USDA Rural Development loan. The benefit: 100% financing. The catch: the home must meet the "rural" requirement.
  2. HomePath Mortgage. The benefit: low down payment (3%) and monthly savings with no mortgage insurance. The catch: the home must be Fannie Mae-owned.
  3. Standard FHA loan. The benefit: 3.5% down payment. The catch:
  4. FHA 203k for that fixer upper. The benefit: 3.5% down payment requirement and financing to fix up needed repairs or desired home improvements. The catch:
  5. HomePath Renovation. The benefit: You only need 5% down with AmeriFirst and you don't need mortgage insurance, and you can finance repairs and home improvements. The catch: The home must be a Fannie Mae-owned property.
There are other options as well. But the bottom line is that you have options. You don't have to stay in an apartment when a home is calling your name. You're not stuck with mom and dad. You can get into a house without breaking the bank (or breaking into a bank). The first step is research. Learn more about the first home journey with "The Essential Guide to Buying Your First Home" at the button below. The free guide walks you though FICO scores, down payments, appraisals and more.

(5 photo: Flickr user Stew Dean)


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