First Time Buyer Programs

The two most popular loan program for 1^st Time Buyers is FHA and VA Financing.  For a list of Pro’s and Con’s for them, please see below.

Pros:

• Low down payment, FHA 3.5% down to max conforming loan amount by area.  VA 0% down up to $2m in loan (subject to change without notice).
• Little to no reserves required.
• Able to obtain credit from lender to cover all of the closing costs while keep the rates lower than that of conventional financing. 
• Allows less than perfect credit.  Some lenders will allow down to a FICO score of 620.
• No MI on VA Financing

  Cons:

• FHA and VA Funding Fee
• MI on FHA Financing required
• Impounds are required
• Some realtors find these programs are less competitive than conventional financing especially in a seller’s market.