First Time Home Buyer

Guidance for Your Biggest Decision

Buying your first home is exciting—but it can feel overwhelming without the right guidance. From understanding loan programs and budgeting for upfront costs to navigating credit requirements and closing steps, we simplify the process so you can move forward with confidence. Our goal is to make homeownership achievable by providing expert advice, personalized solutions, and resources tailored for first-time buyers.

First Time Home Buyer Options

Embarking on the journey to homeownership for the first time can be both thrilling and challenging. To make this process smoother, various mortgage options cater specifically to first-time buyers. This guide provides a summary of popular choices, including FHA Mortgage options, VA Loan Options, Freddie Mac Home Possible®, Fannie Mae HomeReady®, Renovation options for first-time buyers, and state-sponsored grant programs.

1. FHA Mortgage Options

Ideal for: First-time buyers with limited funds for a down payment and those with less-than-perfect credit.

Features

Low down payment requirements (as low as 3.5%).
Flexible credit score criteria.
Competitive interest rates.
Assistance programs for down payment and closing costs available.

2. VA Loan Options

Ideal for: Eligible veterans, service members, and their spouses.

Features

No down payment required.
No private mortgage insurance (PMI).
Flexible credit requirements.
Competitive interest rates
Support from the Department of Veterans Affairs.

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3. Freddie Mac Home Possible®

Ideal for: First-time buyers with low to moderate incomes.

Features

Low down payment requirements.
Flexible sources for down payment, including gifts and grants.
No geographic restrictions.
Homeownership education may be required.

4. Fannie Mae HomeReady®

Ideal for: Buyers with low to moderate incomes.

Features

Low down payment requirements.
Flexible income sources for qualification.
Reduced private mortgage insurance (PMI) costs.
Homeownership education may be required.

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5. Renovation Options for First-Time Buyers

Ideal for: Those looking to purchase a fixer-upper and finance renovation costs.

Features

FHA 203k or Fannie Mae HomeStyle® Renovation loans.
Combines home purchase or refinance with renovation funds.
Flexibility to personalize and upgrade the property.
Streamlined process with one loan closing.

6. State-Sponsored Grant Programs

Ideal for: First-time buyers seeking financial assistance from state-level initiatives.

Features

Down payment assistance.
Closing cost assistance.
Special loan programs tailored to state residents.
Income and eligibility criteria may apply..

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First Time Buyer Webinar

Timestamped Table of Contents

1:20 – Why It’s So Important To Get Pre-Approved For A Mortgage First
4:25 – Employment Requirements
6:00 – Quick Word For Self-Employed Borrowers
7:30 – Income Requirements & Understanding Debt To Income Ratios
11:00 – Staying in your “Comfort” Zone when it comes to
12:50 – How Good Does Your Credit Need To Be To Buy A House?
18:15 – Documents That You’ll Need To Provide
24:20 – Down Payment Requirements (and special programs you might qualify for)
28:00 – Does it make sense to shop around for a mortgage?
30:15 – Home Searching Hacks (also, check out this article)
41:00 – How To Choose The Right Real Estate Agent For You
47:45 – The Negotiation Process, What To Expect
50:45 – Contingencies To Watch Out For Once You Have A Contract
59:00 – How To Get Started Right Now 🙂

Benefits of First Time Home Buyer Programs

As a first-time homebuyer, the key is to explore these diverse mortgage options to find the one that aligns with your financial situation and homeownership goals. Whether it’s FHA, VA, Freddie Mac Home Possible®, Fannie Mae HomeReady®, renovation loans, or state-sponsored grant programs, each option is designed to facilitate your path to owning your dream home. Consult with a knowledgeable mortgage professional to determine the best fit for your unique circumstances and take the first step toward becoming a homeowner.

Frequently Asked Questions – First-Time Home Buyer Programs

1. What loan programs are available for first-time homebuyers at Bond Street Loans?

We offer a variety of first-time buyer options, including: FHA loans (as low as 3.5% down), VA loans (0% down for eligible veterans), Freddie Mac Home Possible®, Fannie Mae HomeReady®, conventional 97% LTV loans, FHA 203(k) and Fannie Mae HomeStyle® renovation loans, as well as state-sponsored grant and down payment assistance programs.

2. How much down payment is required for an FHA loan?

With an FHA loan, you can put down as little as 3.5% if your credit score is 580 or higher; a 10% down payment is required if your score is between 500–579.

3. Can I get a loan with no down payment?

Yes. Eligible veterans and active-duty service members may qualify for VA loans, which require 0% down and do not require private mortgage insurance (PMI).

4. What credit score is needed to qualify?

FHA loan: Minimum of 580 for 3.5% down (500–579 requires 10%).
Conventional 97% LTV: Best rates with credit scores of 700+; minimum requirement is around 620.

5. What is PMI, and when is it required?

Private mortgage insurance (PMI) is required for conventional loans when the down payment is less than 20%. FHA loans require upfront and annual mortgage insurance premiums (MIP), which can last for the life of the loan.

6. Are there renovation loan options for fixer-uppers?

Yes. We offer FHA 203(k) renovation loans and Fannie Mae HomeStyle® renovation loans. These combine the purchase price and renovation funds into one mortgage, allowing homeowners to finance updates in one closing.

7. Can I get help with down payment or closing costs?

Many first-time buyers qualify for state-sponsored grant and down payment assistance programs. Additional help may come via seller concessions (up to 6% with FHA loans) or private grants.

8. What eligibility criteria apply to first-time buyer programs?

A “first-time buyer” is generally defined as someone who hasn’t owned a home in the past three years. You’ll also need to meet program-specific credit, debt-to-income (DTI), and income limit requirements, especially for state-sponsored programs.

9. How do government-backed loans differ from conventional loans?

FHA loans: Government-insured, lower credit requirements, low down payment (3.5%), but require MIP.
VA loans: No down payment, no PMI, reserved for eligible military members.
Conventional loans (HomeReady®, Home Possible®, Conventional 97%): Typically require higher credit scores, but offer low down payment options and potentially cancellable PMI.

10. What are the steps to start the homebuying process?

A typical timeline will include:

Pre-approval (verifying income, credit, and debt)
Documentation submission
Home search and offer
Home appraisal and underwriting
Closing (sign loan docs, pay closing costs)

Our “First Time Buyer” webinar also covers topics like employment history, self-employed documentation, debt-to-income ratios, and choosing a real estate agent.