First time home buyer programs can help individuals buy a house more easily. For most people, buying real estate is one of the largest financial investments they will ever make. Learning how the process works and what to expect can ease anxiety and help buyers make informed decisions.

To determine which first time home buyer programs are best suited, buyers should spend time conducting online research or consult with a mortgage advisor. Some of the more popular home buying programs include: FHA and VA loans, HUD homes, and Fannie Mae Homepath properties.

The Department of Housing and Urban Development offers an abundance of home buying information via their website at HUD.gov. Buyers can review available first time home buyer programs offered in their state of residence and participate in housing counseling to ensure they are ready to take the plunge into home ownership.

HUD home buying programs vary by state, but most allow buyers to purchase HUD homes at reduced rates. Individuals employed in public service professions may qualify for HUDs ‘Good Neighbor Next Door’ program. HUD offers special pricing to teachers, police officers, firefighters and emergency responders. Good neighbor incentives include discounts of up to 50-percent off real estate listing prices.

The Federal Housing Authority offers special financing options for first time home buyers. FHA loans can help borrowers with less than perfect credit obtain financing. Down payment requirements can be as low as 3.5-percent.

FHA loans can be a good choice for buyers who have previously filed personal bankruptcy or those who do not possess a solid employment history. The Federal Housing Authority is one of the few mortgage providers allowing buyers to obtain down payment assistance from an outside source.

The Veterans Administration offers first time home buyer programs to veterans and active duty personnel. The VA guarantees up to 25-percent of the loan amount for loans over $144,000 and offers no money down loans to qualified applicants. Details of available loan programs, lending requirements, and a list of available properties is provided at VA.gov.

Fannie Mae Homepath properties encompass nationwide residential homes which have been repossessed due to foreclosure. This government-sponsored program offers a low down payment requirement of 3.5-percent, down payment assistance, and closing cost incentives.

Buyers of Fannie Mae Homepath properties can apply for financing through Home Path Mortgage. Fannie Mae works with select lenders to offer special financing and flexible mortgage terms. Buyers are not required to pay for real estate appraisals or mortgage insurance when financing is obtained through Home Path Mortgage.

Buyers of Fannie Mae homes which require repairs can apply for Home Path Renovation Mortgage loans which include additional funds for necessary repairs. Individuals can review program details and properties for sale at Homepath.com.

Many of the programs above offer first time home buyer loans. While these loans can help offset closing costs and reduce down payment requirements, buyers should take time to become educated about the pros and cons and ensure they meet eligibility requirements.

First time home buyer loans can place restrictions on buyers that conventional mortgage loans do not. Many of the programs place dollar limit restrictions and require buyers to purchase homes on the low end of the scale. Additionally, buyers can only use first time home buyer loans to purchase houses used as a primary residence. Those who plan to buy houses for use as rental properties will not qualify for first time home loans.

Author Bio: California real estate investor, Simon Volkov share additional information regarding first time home buyer programs via his website. Visitors can review available programs and connect with resources which allow them to make informed decisions. Learn more by visiting www.SimonVolkov.com today.

Category: Real Estate
Keywords: first time home buyer programs,fha loans,va loans,fannie mae homepath properties,home path mortgage