Getting into that first home – it can seem like a daunting task.
Perhaps you feel like you can’t qualify for a mortgage loan. Perhaps you’re worried about having enough money for a down payment. And then of course there’s the matter of the monthly mortgage payment – it needs to be affordable.
Luckily, there are a number of special first-time home buyer programs geared toward making home ownership affordable. Your choices go well beyond conventional mortgages, and your lender can help you determine if you qualify.
VA Loans
Have you or your spouse ever served in the armed forces? If so, you may qualify for a VA Loan, insured by the U.S. Department of Veterans Affairs. A VA Loan offers flexible qualification guidelines. Plus, you can get a VA Loan with no down payment and no private mortgage insurance.
FHA Loans
An FHA mortgage loan is insured by the Federal Housing Authority. A lot of first-time home buyers apply for FHA loans, because they come with a low interest rate and no down payment requirement. Closing costs can also be included in the loan.
NIFA Loans
A NIFA mortgage loan is insured by the Nebraska Investment Finance Authority and offers favorable terms for first-time home buyers. A NIFA loan allows you to have a debt-to-income ratio up to 45%, offers a low interest rate and requires either a low down payment or no down payment at all.
USDA Loans
A USDA mortgage loan is insured by the United States Department of Agriculture and is designed to promote home ownership within rural areas or low-to-moderate income neighborhoods. While this type of loan has some property eligibility requirements, it offers a low interest rate and requires no down payment.
First-Time Home Buyer’s Guide
If you’re thinking about buying your first home, a great place to start is with our First-Time Home Buyer’s Guide, which provides all sorts of advice, tools and tips for the home buying journey. It will give you a clear picture of what to expect all along the way. View or download the guide today for the information you need to make a sound financial decision.
Jan Stoldorf is a Vice President at Heartland Bank and serves as the Branch President of the Geneva and Shickley Branch. She has been an associate at Heartland Bank since 2002.
