Getting a mortgage is a major milestone, and we want to be there to help you achieve this goal. We have multiple mortgage programs available for first home buyers who need flexible financing, and our mortgage specialists have the knowledge and understanding of what's required to complete this process.
We'll save you money with competitive mortgage rates and save you time with an easy application process and quick closing.
Let us provide the financing you need to enter into the next phase of your life as a homeowner.
The conventional mortgage is the most popular financing option for homeowners. You can select between a fixed-rate mortgage or an adjustable-rate mortgage, also known as an ARM. Your mortgage term can range between 10 to 30 years, depending on your preferences.
A conventional mortgage is best if you have a 620 credit score or above and have a 20% down payment saved or if you can qualify for a 3% down payment program. You will have to pay private mortgage insurance each month until your home has 78% equity if you make a down payment lower than 20%.
FHA loans are insured by the Federal Housing Administration (FHA) and are a go-to mortgage program for first-time homebuyers who want a low down payment. You can secure a fixed or adjustable-rate FHA loan.
An FHA loan is generally the best for first-time homeowners if you have a credit score 640 and above. Private mortgage insurance will be added to your monthly payment for the life of the loan unless you refinance it into a conventional mortgage.
The Department of Veteran Affairs insures the VA loan. With low-interest rates and no down payment requirement, VHA loans offer long-term financing to eligible American veterans and their surviving spouses. These loans provide easier qualifying terms and no monthly mortgage insurance.
The benefits of a VA loan make it a great mortgage option if you are a first time home buyer and a member of the armed forces.
5/5 Adjustable-Rate Mortgage
A 5/5 Adjustable-Rate Mortgage gives you a rate 1% lower than the stated 30-year fixed-rate mortgage. Rates adjust once every five years and can change by no more than 2% during each five-year period and no more than 5% for the life of the loan.
This is an excellent option to consider if you don't plan to live in your home for an extended period. You can take advantage of the lower interest rate within the first 5 years before it adjusts.
When buying your first home, the renovation loan gives you the financing you need to cover the cost of repairs, upgrades, and remodeling. Available options include :
You might consider a renovation loan if you're purchasing a fixer-upper or one that you plan to renovate extensively since the terms and conditions allow you to finance the anticipated renovation costs.
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First Time Home Buyer Resources and Tools
As a first time home buyer, we believe in providing you with the support you need every step of the way. Here are some of our most useful resources and tools to help you through this process.
Mortgage Payment Calculator
How Much House Can I Afford Calculator
Mortgage Loan Checklist
Mortgage Loan Process Guide
Fixed Rate vs. Adjustable Rate Mortgages
Free Credit Counseling
Frequently Asked Questions About First Time Home Buyer Mortgages
Where should a first time home buyer start?
When you're ready to purchase your first home, the first thing you should do is talk to a local mortgage lender. Have them review your credit profile to see what you need to do to qualify. Based on their recommendations, you can make a plan to prepare your finances to purchase a home. In general, you will need to pay off your credit cards and other debt and save for a down payment of at least 3.5%.
Who qualifies you as a first time buyer?
A first time home buyer is someone who has never purchased a home or someone who hasn’t owned a home in at least 3 years.
Are there grants for first time home buyers?
There are many grants available to help first home buyers cover down payment and closing costs. Talk to your home loan specialist to see what options are available for you.
What credit score is good for buying a house?
This will depend on the type of loan you get. Conventional & FHA mortgages require a score of 640 or higher.
How much money should I have to buy a house?
This again depends on the type of loan you get. FHA loans have a 3.5% minimum down payment. You can score a conventional loan with a 3% down payment if you have a credit score in the upper 600s. Otherwise, you will need to make a 20% down payment.
Meet the 1st Advantage First Time Home Buyer Mortgage Team
When you’re ready to start the process of buying a home, our friendly and knowledgeable mortgage team is prepared to support you.
Complete our quick and easy online application to get started with a 1st Advantage Federal Credit Union mortgage.
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