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

The main loan types you'll encounter are conventional, FHA, VA, and USDA. Each has different requirements and benefits. Conventional loans are the most common. They require a minimum 3 to 5 percent down payment, a credit score of 620 or higher, and have competitive interest rates if your credit is strong. PMI is required if you put less than 20 percent down but drops off once you reach 20 percent equity. FHA loans are designed for buyers with lower credit scores or smaller down payments. Minimum 3.5 percent down with a 580 credit score, or 10 percent down with a score as low as 500. The tradeoff is that mortgage insurance stays for the life of the loan unless you refinance into a conventional loan later. FHA is often the best option for first-time buyers who don't have perfect credit. VA loans are for veterans, active military, and eligible surviving spouses. Zero down payment, no PMI, and competitive rates. If you qualify, this is almost always the best loan available. USDA loans are for buyers in eligible rural and suburban areas. Zero down payment and reduced mortgage insurance. Income limits apply but the areas that qualify are more suburban than most people expect. On first-time buyer assistance, most states and many cities offer down payment assistance programs, grants, and below-market rate loans specifically for first-time buyers. These programs change frequently and vary by location. A HUD-approved housing counselor in your area can walk you through every program you qualify for at no cost. Find one at hud.gov. Your first step is to talk to a lender and get pre-approved. They'll pull your credit, review your income and debts, and tell you which loan programs you qualify for and what your purchasing power looks like. From there, you'll know exactly what you're working with.

Speaking to a lending professional would be a good step in the right direction.

You don’t need to figure it all out yourself. That’s what the lender does. Your first step is simple. Talk to a lender and get pre-approved. They’ll look at your income, credit, and debts, then tell you what you qualify for. From there, they’ll guide you on loan types. Here’s the quick breakdown so you know what you’re hearing: FHA → lower credit and lower down payment, but has mortgage insurance Conventional → better if your credit is solid, can be cheaper long term VA or USDA → great options if you qualify, often little to no down payment Also ask about first-time buyer programs. There are grants and assistance that can help with down payment and closing costs. Not everyone knows about these, so you have to ask directly. Good questions to ask your lender: “What loan fits my situation best?” “What’s my monthly payment, not just my price range?” “What assistance programs do I qualify for?” Simple way to think about it. You don’t pick the loan first. You get your numbers, then choose the loan that fits you.

Step one: talk to a good lender early. Not Google, not your cousin’s advice—a lender. They’ll walk you through what you qualify for based on your income, debt, and credit, and show you different loan options like conventional, FHA, or first-time buyer programs with lower down payments. There’s often more help available than people realize, but you have to ask the right questions. Think of it less like picking a loan and more like building a plan—what’s your budget, your timeline, and your comfort level? A good lender will map that out and give you clarity fast.

You should reach out to a local lender or to the bank you prefer. Your Realtor can recommend three options for you to explore. Based on your debt, assets, credit score, and income, these all come into play for your financing options. If you need a referral to a local Realtor, I can help you find one. Michelle Cecchini 386.717.8005 call or text

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!

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.

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

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!

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.

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.