How to Apply For a First-Time Home Buyers Loan: Simplifying the Process Into 8 Doable Steps
The first time you do something is always the hardest, and buying a house is no exception. Fortunately, first-time homebuyer loans can ease the process by providing access to special mortgage programs with low down payments. You might even find grants to assist with closing costs and down payments. Sounds great, right? But if you’re unsure how to proceed, it can feel daunting and discouraging. That’s where we come in. With this expert-backed guide, we’ll show you how to apply for a first-time homebuyer’s loan in eight manageable steps.
Step 1: Make sure you qualify
If you haven’t owned a house in the past three years, you’ll qualify for most first-time homebuyer programs. However, if you own a rental or investment property, even if you don’t live there, you won’t be considered a first-time buyer.
Keep in mind that for government-backed first-time homebuyer loans like the Federal Housing Administration’s FHA loan or the U.S. Department of Agriculture’s USDA loan, both the buyer and the home must meet the qualifications. Be sure to review the requirements for your specific mortgage, as many programs offered at the local or state level have income restrictions.
Step 2: Research down payment assistance in your area
There are thousands of down payment assistance (DPA) programs, which are run by more than 1,300 agencies — so there is a lot of help out there. These break down into four main categories:
