• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
MyLendingPal Logo

MyLendingPal

Georgia Mortgage Brokers

  • About
    • Blog
    • Careers
    • FAQs
    • Our Process
  • Home Loans
    • Conventional
    • FHA
    • First Time Home Buyers
    • VA
  • Refinancing
  • Resources
    • Are You Ready To Buy?
    • Finding The Right Home
    • How To Find An Agent
    • How To Get Pre-Approved
    • How To Make An Offer
  • Calculators
    • Balance
    • Conventional Loan
    • FHA Loan
    • VA Loan
  • 833.379.0797
  • Apply Now

How To Qualify For A First Time Home Buyers Loan

January 11, 2021

A first time home buyers keyFirst time home buyers often have access to unique benefits that repeat buyers do not. First time home buyers Loan for those who meet the necessary qualifications can potentially enjoy lower down payment costs, grants to help with the down payment and closing costs and lower monthly mortgage payments.

What is a First Time Home Buyers Loan?

A first time home buyers loan is a type of loan offered by lenders that offer unique benefits to help first time buyers afford the new home. There are also first time home buyer grants available in every state for those who qualify, which may offer financial assistance or forgivable loans.

Most of the more popular loan programs — including FHA, Conventional, USDA and VA — offer special loan benefits to first time home buyers who qualify. The benefits may vary for each person who applies, depending on the specifics of their situation. The most common benefit of the loan is a no down payment (or low down payment) home loan.

The Necessary Qualifications

A toy house on green grass.The qualifications for a first time home buyers loan vary for each loan programThe qualifications for a first time home buyers loan vary for each loan program. The most common factors that loan programs consider are:

  • Percentage of the down payment
  • The applicant’s credit score
  • Debt-to-income ratio
  • Type and location of the property
  • Annual income
  • Length of employment

Certain loan programs have additional requirements. For example, VA applicants must have veteran status and USDA loan applicants must apply for a home in certain approved areas. Be sure to check with the loan program you wish to pursue about their requirements for a first time home buyers loan.

Be a First Time Home Buyer

Of course, the first qualification is to be a first time home buyer. This includes anyone who has never purchased a home before. However, certain repeat buyers may also qualify for the loan program. Many programs consider a first time home buyer to be any adult who has not purchased a home in the past three years. This means previous home buyers who went through a foreclosure or home sale more than three years ago and have not purchased a new home can qualify for a first time home buyers loan (depending on the program) if they satisfy all other requirements.

Qualify for Loans and Grants

The next step is to meet all additional criteria for the loans and grants you intend to apply for. Several of the more common loan programs have the following minimum qualifications:

  • FHA – The requirements for an FHA often include a 3.5 percent down payment, FICO credit score of 580 or higher and 50% or lower debt to income ratio
  • Conventional – The conventional loan requirements for the loan program typically include 3 percent down, a FICO credit score of 620 or better and a maximum debt to income ratio of 43 percent
  • USDA – First time home buyers interested in a USDA home loan may need a 640 or greater FICO credit score and a 41 percent or less debt to income ratio (no down payment is necessary)
  • VA – VA loans do not require the borrower to make a down payment. The minimum FICO credit score is typically 580 and the buyer (or their spouse) must be an active duty service member

In addition, every state has special grants that they offer for first time home buyers to make the process more affordable. Be sure to look up the grants available within your state and take steps to ensure you qualify.

Save a Down Payment Amount

A man holding a piggy bank.One main benefit of a first time home buyers loan is a lower down paymentAs mentioned, one main benefit is a lower down payment to help first time buyers afford the home purchase. However, the higher the down payment the buyer is able to make the more likely they are to qualify for other benefits of the loan. As seen above, most loan programs encourage a down payment of 3 percent or greater.

To use an example, first time home buyers with a less than ideal credit score may still qualify for a loan if they are able to make a large down payment (typically 10 percent or greater). For buyers with a poor debt to income ratio, having more money available in their bank account can offset the high amount of debt.

Work With The Knowledgeable First Time Home Buyers Team

Contact us today if you would like to learn more about first time home buyers loans and whether you qualify. At My Lending Pal, we take pride in helping first time home buyers get the best loan terms possible so that they can start their new journey with financial confidence and freedom.

Primary Sidebar

Have a question?

Ask a question or request a consultation, and we will respond to you in a timely manner.
  • This field is for validation purposes and should be left unchanged.

Home Loans

  • Conventional
  • FHA
  • First Time Home Buyers
  • VA

Calculators

  • Mortgage Balance
  • Conventional Loans
  • FHA Loans
  • VA Loans
Contact
833.379.0797
Email
info@mylendingpal.com
Address
5400 Laurel Springs Parkway, Suite 304 Suwanee, GA 30024

Footer

MyLendingPal Logo

Home Loans

  • Conventional
  • FHA
  • First Time Home Buyers
  • VA

Calculators

  • Mortgage Balance
  • Conventional Loans
  • FHA Loans
  • VA Loans

Get the latest news & updates

Equal Housing Lender Logo
MyLendingPal, Inc, NMLS ID #1734346, (www.nmlsconsumeraccess.org); Corporate Office: 5400 Laurel Springs Parkway, Suite 304, Suwanee, GA 30024. Georgia Residential Mortgage Licensee #61544. Principal Loan Originator: Ricky Merchant, NMLS ID: 1517056. Georgia License # 54264. For questions regarding state licensing, please contact (404) 433-8918. Not all products and options are available in all states. Terms are subject to change without notice. Any rates or terms are speculative only and can change without notice.
Google Rating
5.0
MyLendingPal, Inc
MyLendingPal, Inc
5.0
Balachandar Sundaresan
Balachandar Sundaresan
17:30 23 Jun 20
Roger Merchant and his team were very helpful, right from getting a great rate to completing all process on time and being super responsive. Would happily recommend him!!
Dinesh Nair
Dinesh Nair
14:41 30 Jan 20
I would definitely recommend MyLending Pal for all mortgage needs. It all started with a great competitive quote on refinance and excellent service continuing all the way until closing. Priti, Ricky and Roger were a pleasure to work with.
Ramesh Kumar
Ramesh Kumar
02:03 17 Dec 19
I would really recommend Nations First Home Mortgage, if you are looking for the best home mortgage options. I was very much glad to work with this team and they have saved lot of time and money!!
gulshan rai
gulshan rai
03:21 17 Apr 19
I would highly recommend Mr Roger to anyone in the area looking for an amazing lender. He made the mortgage process so easy and effortless. I could tell him and his team were very attentive to all the details that came with applying for a mortgage and were quick to remind me of any deadlines that were approaching.It was super easy to work with Mr Roger.My special thanks to preeti who did an amazing job to get things done in the timely manner. If I had any questions, it was almost like she was waiting at her desk for my phone call to answer the questions immediately. The loans closed on time and without a glitch. I would highly recommend them to anyone
Ajith Nair
Ajith Nair
01:50 13 May 19
We highly recommend Roger for financing mortgage. Roger and his team were excellent through out the process and we had a very smooth purchase. They were always available when we had any questions. It was an amazing experience working with Roger and his team.
Pratul Patwari
Pratul Patwari
13:03 20 Jul 20
Roger Merchant and Priti Vin helped us in buying our first home. They understood our needs and took care of everything for us. They were very good with the communication through the process. They will always be my first choice in future for the mortgage services.
Sujatha Hariharan
Sujatha Hariharan
20:51 26 Jul 20
They were able to find me great rates. Service was quick and communication prompt. The loan process can be daunting as is the document gathering process but this was the easiest and quickest that I have experienced. Highly recommend!
Dinesh Nair
Dinesh Nair
15:53 30 Jul 20
I would definitely recommend MyLending Pal for all mortgage needs. It all started with a great competitive quote on refinance and excellent service continuing all the way until closing. Priti, Ricky and Roger were a pleasure to work with.
Manu Pushpanath
Manu Pushpanath
15:59 29 Jul 20
Great lender to work with. Right from document collection till closing they did it in 2weeks. The fastest closing I heard and get to experience myself. One improvement I suggest is it will be good if the closing attorney can come into the house for completing the closing. Considering current situation it will add a lot of value to the reputation. Thanks Milan and team for a good closing experience.
Sakthi S
Sakthi S
20:46 01 Sep 20
Would definitely recommend Roger and his team.Refinanced for the second time and with roger, I didn’t feel like I refinanced.The process was very smooth and fast.The rates were very competitive and it was amazingworking with Roger and his team.I’d recommend him for sure.
Sunny Patel
Sunny Patel
21:17 01 Sep 20
They were quick, courteous, and professional. They got me an excellent rate and helped make the process smooth. I would recommend using to my friends and family!
Emmitt Rathore
Emmitt Rathore
14:57 22 Dec 20
Roger helped us find an unbeatable rate!His decades of work in the industry made it easy for us to complete many processes with the lender, and helped us close on time!I will definitely be passing the good word around and recommending family and friends to him.I look forward to our next real estate transaction with them.
M Alamoti
M Alamoti
01:02 11 Jan 21
I had the experience of using their service. They know what they are doing. They are very honest, professional and caring. I have no doubt and hesitation to recommend them to anyone who is looking to purchase a home. I am very pleased for their service.
Next Reviews Write a review
powered by Google

© 2021 MyLendingPal · Powered by 321 Web Marketing · Website Privacy Policy & Terms of Use