Can you get qualified? Even without a substantial down payment saved, you’ll find there are programs—such as the FHA loan program—that make it possible for you to become a first-time home buyer.
Make Your First Home Purchase Your Best-Ever Decision
Take advantage of interest rates. There’s no guarantee that interest rates are going to be this low forever. By getting out of the renter’s game and locking in low interest rates, you can begin a lifelong journey of wealth building.
Use less money down than you imagined. The concept of saving up 20% for money down against a loan can scare some first-time home buyers. But we’ll explain why that doesn’t always have to apply to you.
What You Need to Know About First-Time Home Buying
According to some statistics, a majority of renters who want to buy a home don’t move forward because they’re afraid they don’t qualify! But there are plenty of programs that make it viable for lots of people—even those with poor credit—to qualify.
For many first-time home buyers, the main issue is coming up with the down payment. Many of those who would otherwise buy a home feel they would move their purchase timeline forward if they could make the down payment.
With some first-time home buyers’ terms, it’s possible to pay with a relatively small down payment, much smaller than the usually-expected 20%.
Home sales are as hot as ever, with available homes sometimes going off the market in as little as three weeks in some areas—or even less.
Find favorable terms. When you approach it the right way, your first home purchase can be a door to great terms that help you with your monthly budget.
2 Ways to Use Your FHA 203(k) Loan
Buy a Fixer-Upper (and Fix It Up)
Or... Renovate Your Current Home!
As a first-time home buyer, I couldn’t have chosen to work with a better mortgage broker. Jerry and his team helped us get a great rate on our home. Closing costs were incredibly low. Even my agent was impressed. I couldn’t be more satisfied with the entire experience. 1st Choice Mortgage is top-notch and I will be recommending them to everyone that I know.- J.R. Bauer.
Darrel is outstanding. He was patient, answered our questions and made the whole process very smooth. Even after the signing he encouraged us to call him anytime if we had further questions. I would recommend Darrel and if we were to move or refinance, I would ask for Darrel.- Robert Olson.
Kerri made my refinancing easy and was a delight to work with. She saved me a ton of money and I didn’t have to get bogged down in paperwork or calls to do it! She is always available and always keeps me informed. She’s THE BEST!- Catherine Reynolds.
We recently refinanced with 1st Choice Mortgage. Gabe McGuire has been a great pleasure to work with! Efficient, professional, and great rates. We are very pleased with the service they provided us. We highly recommend Gabe at 1st Choice!- zelda zhou.
Kerri Wattier has been a delight to work with. This is our 2nd refinance with her. Kerri is very attentive and has our back at every turn. She listened to what our needs were and walked us through the process which at some times were difficult, however, she stayed positive which helped me stay positive. Everything worked out both times and if we need to do any of this again, she is my go to girl! Thank you Kerri, We appreciate you and your due diligence!- Teresa Person.
Great experience. Sarah Toppi was amazing to work with. She always made herself available even at night/weekends when we needed a new preapproval letter. She answered all questions and was proactive in making sure the process was smooth. We cannot thank her enough and would highly recommend her to anyone buying a home.- Taylor M.
Your Renovation Wish List Could Include...
Increase window size
Bring in more natural light
Finish a basement or attic
Create a mother-in-law apartment or guest space
Correct foundational issues
Protect your investment for the long-term
Add a detached garage when one does not exist
There’s room for everyone
Knock down walls
Open up the floor plan to create versatile, welcoming spaces
Flood-proof your property
Add a retaining wall to prevent expensive damage
Repair the pool
Tired of leaks and cracks? Fix the pool & start enjoying it
Expand or refresh the kitchen
Cooking is just more fun in an updated kitchen
Add square footage
Growing your family? Grow your home alongside it!
How Does a Renovation Loan Work?
Depending on the types of repairs you plan to do, you have two options when it comes to securing a FHA 203(k) Renovation Loan: Limited and Standard.
What Do First-Time Home Buyers Need to Know About Buying a Home?
Why should I buy a home now and not rent until I can save up a massive down payment?
Because there are plenty of options for lowering your down payment! For example, the FHA loan program, which includes loans insured by the Federal Housing Administration, is great for people with low credit scores and not a lot saved for a down payment. That isn’t to say that you shouldn’t save for a down payment—but remain open to all of the options available.
How will I afford my home?
Pre-approval for a first-time home buyer can be a major step in the process, and it’s easier than you think. A pre-approval is essentially a (conditional) promise from a lender that they can offer you the mortgage terms you need to make an offer on a house. This requires an application process that’s much simpler than you might imagine—and great for first-time home buyers who want to shop around and demonstrate to a seller that they’re serious about their offer.
Should I save for a down payment?
Absolutely. Just because you don’t necessarily have to make a 20% down payment on your first home doesn’t mean that you should eschew the process completely. Having a substantial down payment saved never hurts.
I have a low credit score. What kinds of loan programs are there for me?
If you go through the application process and make sure that your payment is in line with what you can fit within your budget (the typical recommendation is a mortgage that takes up no more than 25-33% of your household budget), then you’ll find it’s possible to afford your first home—and the process may be much simpler than you imagined
How do I get pre-approved?
In addition to the FHA loan program as mentioned in the previous answer, you should also look at your qualification for: the VA loan program, the USDA loan program, and even the Good Neighbor Next Door buyer aid program.
What should I do next?
Simple. Click any of our buttons above and find out if your first time home purchase can be as easy as we say it is here. Don’t worry about a low credit score, either—you’ll find that there are plenty of programs out there that can help.