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First time buyer. How do I know what type of loan to get? And how do what I qualify for?

I'm a first time buyer. I've heard that there are different types of loans and some are better for first time home buyers. And I've also heard that there is help for first time buyers. I don't know what I qualify for or what questions to ask to make sure I get this. What do I do?
Asked By Mateo | Bend, OR | 26 views | Finance Legal Info | Updated 22 hours ago
Answers (6)
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Novice
10 Answers
JACQUELYNE HICKS

eXp Realty

Ask the lender how much down payment assistance they can help you with. Also, ask if they offer USDA loans. These loans are 0 down. I have one and I actually got money back at closing. The difference with this loan is that the house has to be in a qualified area. Make sure you get a fixed rate!
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Novice
9 Answers
Trevor Mapes

HomeSmart Pros Real estate

(11)

Great question and don't stress, this is exactly what we're here for!
So here's the honest answer. As your agent I can point you in the right direction but the person you really need to talk to first is a lender. A good lender will sit down with you, look at your income, credit, and savings, and tell you exactly what you qualify for. That conversation costs you nothing and it changes everything because now you're shopping with confidence instead of guessing.
As far as loan types go, here are the most common ones for first time buyers:
FHA loans are probably the most popular for first timers. Lower credit score requirements and you can put as little as 3.5% down. Great if you don't have a ton saved up yet.
Conventional loans are solid if your credit is in good shape. Some go as low as 3% down and you avoid some of the extra costs that come with FHA.
USDA loans are one people sleep on. If the home is in a qualifying rural or suburban area, you could be looking at zero down. Zero.
VA loans are for veterans and active military. Honestly one of the best loan products out there if you qualify. Also zero down.
And yes, there is down payment assistance out there, especially in Arizona. Your lender will know what programs are available and what you qualify for. Don't leave that conversation without asking.
The biggest thing I tell my first time buyers is just start the conversation. You might be way closer to owning a home than you think.

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Novice
3 Answers
Julie Meinert

Keller Williams North Atlanta

(9)

There are multiple different vendors to obtain mortgage loans. Banks, Credit Unions, OnLine lenders and Mortgage Brokers. I have found that local Mortgage Brokers have access to many more lending options and know about all the local First time Home Buyers programs. The key is to reach out to multiple sources. Vet their ratings and customer reviews. Prior to obtaining your first Pre-Approval make sure you take the time to "Opt Out" from your email and cell phone being shared by the Credit Bureau Companies. It's similar to the National Do Not Call list but for persons searching for the best lender options. The spam calls can be daunting if you don't opt out. The website is: https://www.optoutprescreen.com/form
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Novice
3 Answers
Haley Overton

Real Broker 2175 NW Raleigh Street ste 110 Portland OR 97210

(31)

You're asking the right questions up front!
Navigating the mortgage world for the first time feels like learning a new language. To keep it simple, think of your options in two categories: The Loan (the debt) and The Assistance (the help).
1. The "Big Three" Loans
-FHA: Best for lower credit (580+) and small down payments (3.5%).
-Conventional: Best if your credit is 620+; only requires 3% down.
-USDA/VA: 0% down options for specific rural areas or Veterans.

2. The "Free Money" (Grants)
Most states offer Down Payment Assistance (DPA). This can be a grant or a "silent" second loan that you don't pay back until you sell.

3. Ask Your Lender These 3 Questions:
Do you participate in state/local down payment assistance programs?
What is the total monthly payment including principal, interest, taxes and PMI (private mortgage insurance if you're putting less than 20% down)?
Which loan type (FHA vs. Conventional) is cheaper for my specific credit score?

If you need a local lender here in Bend, I'd love to recommend a few!
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2 Answers
Cheryl Crocitto

Christie’s International Real Estate Group

(2)

As a first-time buyer, the best first step is to speak with a reputable lender who can review your income, credit, debts, and savings to determine what loan programs you qualify for and how much home you can afford. They will explain the different loan options available, such as conventional, FHA, or other programs, and help you understand the pros and cons of each. Getting pre-approved early in the process also gives you a clear price range and strengthens your position when you begin making offers on homes.
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SYLVIA RHODES

Fontaine Family The Real Estate Leader

Congrats on buying your first home! That is a huge life decision. I would ask the lender what type of things you may qualify for as a first-time home buyer. In Maine we have the Maine Housing program that helps first time home buyers get up to $5k towards their closing costs. This is huge because closing costs can be upwards to $10k I have seen. You may qualify for more than $5k depending on your circumstances. The most I have seen anyone qualify for is $10k.

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