Federal Housing Administration (FHA) Loan

• Mortgages insured through FHA are the easiest loans for which first-time home buyers can qualify. A borrower will be required to a have a credit score in the mid- 600s. Also, a 3.5 percent down payment toward the purchase price of the home will be required. These loans can be obtained through any FHA-approved lender. First-time home buyers will have less out-of-pocket expenses if purchasing a home with an FHA loan.
  
  

Good Neighbor Next Door (GNND) Program

• The GNND program allows eligible law enforcement officers, firefighters, teachers and emergency medical technicians to purchase a HUD home at a 50 percent discount. This discount is received as a deferred second mortgage that requires no repayment as long as the home is occupied for three years. This program is available to first-time home buyers and professionals who have not owned a home one year prior to submitting an offer for a HUD home. Only purchases of single-family homes are eligible for the GNND program.
  
  

Local Government Loan

• Local cities and counties offer first-time home buyer programs that assist borrowers in qualifying for larger loan amounts. These programs offer a second mortgage to low- or moderate-income households, which increases their purchasing power. The second loan is typically deferred until the resale or refinance of the property. The home buyer must still be able to qualify for a first mortgage. The home must be the primary place of residence. These programs may require the applicant to complete a home buyer education seminar.
  
  

Coventional Loan

• First-time home buyers are not limited to FHA loan products. A conventional loan is an option for any home buyer who has a credit score of at least 720. There are many advantages to obtaining a conventional loan, although it is more difficult to qualify for. The loan limits are higher, though, allowing the borrower to qualify for a larger loan amount. A conventional loan can also offer different loan structures, for example, an adjustable rate mortgage. Conventional mortgages will typically require a 10 to 20 percent down payment toward the purchase price of the home.