The thought of buying a home for the first time can be very scary. It is so important for you to know all your options before you start the process. Any one of our loan officers will take you through the process, but if you want to get the knowledge beforehand, here you go! Listed below will tell you the basic information about the best first time home-buyer loans, what housing grants are available, and how to apply for the grants.
Different Types Of Loans:
FHA Loans are best known for low credit scores, down payments, and closing costs.
This is a known go to program for first time home buyers. This loan is insured by the Federal Housing Administration to allow the lenders to give you a better deal. It has easy access for lower credit scores as well. This program allows down payments as low as 3.5%. For borrowers with scores as low as the 500s you may be required to put down 10%.
hud.gov
VA Loans are best for military and low down payments.
The U.S Dept. Of Veterans Affairs help to serve active military, veterans, and their families to buy homes. These loans are specifically provided to have competitive interest rates, low or no down payment and mortgage insurance. It can also help lower closing costs. There is no recognized minimum credit score for these loans.
benefits.va.gov
USDA Loans are best known for rural areas and no down payment.
This program allows no down payment for homes simply in rural areas. The US Department of Agriculture issues these loans. There are, however, income limitations which vary. This program is ideal for credit scores for the mid-high region (640 or higher). Those with lower scores can still qualify but must meet more strict qualifications. They have multiple loans to qualify for, depending on your income. They will help with low income families and can provide grants and payment assistance as well.
usda.gov
Conventional Loans are best known for low down payments and limited mortgage insurance.
A conventional mortgage is not insured by the federal government. These mortgages fulfill the requirements set by Fannie Mae and Freddie Mac. They allow down payments as low as 3% for first time home buyers or low income buyers. These loans are appealing because it allows borrowers to cancel their mortgage insurance or avoid it all together if they put 20% down.
Another great option for a loan is a 2:1 buy down. Which means you can buy down for a lower interest rate. For the first two years you'll pay the lower rate and the third year you will pay the approved rate. You get a lower mortgage payment for the first 2 years of the loan. You get pre-qualified at the high rate so we know when the rate goes back up, you can afford it. The seller has to know that a 2:1 buy down is happening, and they must agree. Lender will require the seller or buyer to pay an extra fee for this agreement and will be set in an escrow account.
Grants and Programs for First Time Home Buyers 
Grants are not a hidden gem in the state of Virginia. There are so many wonderful grants out there to help out people in need. All the way from renovating your home to helping along with bills. Get yourself educated in the application process and get started today. First time home buyers- you are not alone. Buying a home can be one of the hardest and most expensive processes out there. With the right tools and professionals on your side, it can be fun and easy. I have linked the top sites for you to visit to be able to find any grants that work for you. All you have to do is apply. The Virginia Housing Departments partner with nonprofits, local governments, state, and federal agencies to provide help to people in need.
Popular Grants Include But Not Limited To:
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Low income grants for bills
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Grants for taxes
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Home repairs
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Grants for the elderly
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Homes renovations
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Mortgage assistance
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Rental assistance
Visit https://grantsforhomeowners.com/grants/va , https://www.hud.gov/ , and https://www.grants.gov/ to get more detailed information about the grants and programs out there for you!
How to Apply:
Each agency has specific rules on how to apply for the specific grant you want. The best way to know, is to hunt down your local government office and contact them. The representatives will be able to inform you on the qualifications and requirements. You can also search and apply for grants on the websites linked above. You will first have to make a free account then search for the available grants and apply. On their site they have a very detailed first page to answer all of your questions. It can be a daunting process but they make it very easy to apply and let you know if you meet the eligible requirements. It is also crucial to have all the documentation for each grant. Applicants are accepted all year and their approval depends on the funding in your area.
