7 Great Programs for First-Time-Home Buyers

Guide to First-Time Homebuyer Loan Programs

Navigating the world of home loans can be challenging, especially for first-time homebuyers in North Carolina. Fortunately, Certified Home Loans in Raleigh offers several loan programs designed to make the process more accessible and affordable. Whether you’re concerned about your credit score, down payment, or interest rates, there’s likely a program suited to your needs.

1. FHA Loans

Federal Housing Administration (FHA) loans are popular among first-time buyers due to their flexible qualification requirements. With a credit score of 580 or higher, you can secure a loan with as little as 3.5% down. Even if your score is lower, down payments of around 10% may still make you eligible. FHA loans are particularly beneficial for those who might not qualify for conventional loans due to a lack of credit history or lower income.

Learn more: FHA Loans with Certified Home Loans

2. USDA Loans

The U.S. Department of Agriculture (USDA) offers a loan program aimed at buyers in rural and suburban areas. One of the main attractions of a USDA loan is the potential for 100% financing, meaning no down payment is required. To qualify, you generally need a credit score of 640 or higher. A manually underwritten loan might still be an option if your score is lower. USDA loans often come with lower interest rates and can be a great option if you meet the location and income requirements.

Learn More: USDA Loans with Certified Home Loans

3. VA Loans

Veterans Affairs (VA) loans are available to military members, veterans, and eligible surviving spouses. These loans are known for their favorable terms, including competitive interest rates and the possibility of no down payment. Unlike most loans, VA loans do not require private mortgage insurance (PMI), which can save borrowers significant money over the life of the loan. Additionally, there is no minimum credit score requirement, though lenders may set their criteria.

Learn More: VA Loans with Certified Home Loans

4. Freddie Mac and Fannie Mae Loans

Freddie Mac and Fannie Mae offer loan programs that can be a lifeline for first-time buyers. These programs often allow for lower down payments—sometimes as low as 3%—and provide more flexible credit requirements than traditional loans. Additionally, Freddie Mac and Fannie Mae offer educational resources and counseling to help buyers navigate home buying.

Learn More: Freddie Mac & Fannie Mae Loans with Certified Home Loans

5. Energy-Efficient Mortgage (EEM)

Energy-Efficient Mortgages (EEM) are FHA-backed loans that help buyers finance energy-saving upgrades to their homes. Whether you’re looking to install new windows, improve your insulation, or upgrade your HVAC system, an EEM can cover the costs. These loans are an excellent option if you want to reduce your long-term energy bills and your carbon footprint.

6. FHA Section 203(k) Loans

If you’re considering purchasing a fixer-upper, an FHA Section 203(k) loan might be the perfect solution. These loans provide the funds necessary to buy and rehabilitate a home, all within a single mortgage. This option is ideal for buyers who see the potential in a home that needs some work and want to customize it to their tastes.

Learn More: Construction & FHA Section 203(k) Loans with Certified Home Loans

7. Local Grants and Programs

Many states, including North Carolina, offer grants and assistance programs for first-time homebuyers. These can include down payment assistance, closing cost help, or even favorable loan terms. It’s worth researching what’s available in your area to take full advantage of these opportunities.

Why Certified Home Loans?

At Certified Home Loans, we understand that buying your first home can be overwhelming. Our team of experts is here to guide you through the process, helping you find the best loan options that meet your specific needs. Whether you’re interested in an FHA loan, a VA loan, or another type of mortgage, we have the resources and experience to help you achieve your homeownership goals.

To learn more about which loan program might be right for you, contact us today.  Our team is ready to assist you in taking the first step towards owning your dream home.

Explore More

• Understanding VA Loans
• Understanding FHA Loans
• First-Time Home Buyer Tips
• VA JUMBO Loans
• Mortgage Refinancing
• VA IRRRL Refinance

This guide should give you a comprehensive understanding of the loan options available to first-time homebuyers. Each program has its unique benefits, so it’s crucial to choose the one that aligns with your financial situation and long-term goals. For personalized advice, don’t hesitate to reach out to Certified Home Loans: 919-510-1108