FNMA and FHLMC has several loan programs with features designed to benefit First Time Home Buyers.

Buying a home can be a daunting experience -- even for a savvy veteran. When it comes to a first time home buyer, it's downright scary. It can keep you awake all night. There's a whole new language to learn and your personal financial life is hanging out for a bunch of strangers to examine and rule on. It's confusing and intricate with a million things to remember and follow up on. Not to mention the basic underlying questions: Is this house really worth the money? Will the value go up or down? Am I buying in the right neighborhood? What if the house falls down soon after I buy it? Am I doing the right thing? Should I just rent for another year? In the light of day, however, it's a business transaction that thousands go through every day. If they can do it, so can you.

In today's aggressive residential finance marketplace, it has become increasingly easy for people with good and even fair credit histories to take advantage of propmotional first time buyer programs which allow for no money down 100% bank financed mortgages incorporating closing costs, as well as aggressive introductory rates on the mortgage and on HELOCs and credit cards from the same lender.

Another way to get some, if not all, of your closing costs paid is to have the seller of the home contribute a percentage to be applied towards your closing costs. The most common is a 3% contribution and most contracts have a provision for this. Ask your realtor how to structure your contract.

80/20 –no money down combination program. Eliminates mortgage insurance with 80% First Mortgage, 20% Second Mortgage.

Many of the first time homebuyer programs require as little as $500 from the borrowers own funds. The rest can come from gifts, grants, or seller concessions.

FHA – often the best choice in first time home buyer programs. Requires 3% down and upfront mortgage insurance.

Fannie Mae My Communtiy Mortgage 97 or 100% is a great loan for the first time homebuyer with little or no down payment as well borrowers with little or no credit history.

A first time home buyer may also qualify for the Down Payment Assistance Programs as well by qualifying for any owner-occupied home loan from a lender who accepts grant funds from a nonprofit organization, and by purchasing a participating home from a seller who agrees to make a contribution to the program after the home closes.

A first time homebuyer is someone who has NOT owned a home in the last three years.

The Texas First Time Homebuyer Program provides below market interest rate mortgage loans through a network of participating lenders to eligible families and individuals who are purchasing their first home or who have not owned a home in the past three years.

There are great first time home buyer programs for neighborhood champions. Teacher Flex if for a full or part time teacher, administrator, librarian, counselor, administrative staff and support & custodial staff. Police and Firefighter Flex is for full time sworn member of a police department, sheriff's office, corrections department or other agency who is responsible for law enforcement or offender detention, full-time sworn member of a fire department who is responsible for fire suppression, emergency medical response, & terrorism response. Medical Worker Flex is for a medical resident, physician or fellow: full time dentist, oral surgeon, dental asistant; full time healthcare employees including RN, LPN, LVN, CAN, AUA, UAP, physicians assistant, licensed medical technologist or therapist.

It is important that you get away from renting and become a homeowner in order to start building your equity for future upgraded home purchases.

There are also loans where the first time homebuyer may opt to roll the closing costs into the loan.

103% - allows 3% of the purchase price to be rolled into the loan.
107% - allows 7% of the purchase price to be rolled into the loan.