Owning a home is a cherished dream for most. Unfortunately, many find it difficult to fulfill their dreams due to a shortage of finances. If this is what’s preventing you from purchasing a home, you might want to consider learning about first time home buyer loans through mortgage lending specialists like Vahe Hayrapetian.

About the First Time Home Buyer Loans

A first time home buyer loan is a Federal Housing Administration (FHA) loan sponsored by the Department of Housing and Urban Development (HUD). With this loan type, potential homeowners can gain access to the money needed to purchase their own home. First time home buyer loans are guaranteed by the government, although financing is not granted directly by the FHA, but through a variety of traditional lending establishments like banks, credit unions, or approved lenders.

Getting Started

Most first time home buyer loans require a down payment, but at relatively low rates. Conventionally, a 10 to 20 percent down payment is required for a loan, but with first time buyer loans, borrowers can pay as low as 3.5 percent down payment.

The interest rates for first time buyer loans are usually on the average range. However, a borrower’s credit rating can directly affect the actual rate. You should know your credit score before you apply for a first time home buyer loan, and monitor your credit report to ensure there are no inaccuracies that could negatively affect your credit rating. That said, an FHA loan may be granted even to those with less than ideal credit scores.

Get Help

You should also seek loan counseling prior to your first time home buyer loan application so you may receive advise on such important issues as the loans’ terms and conditions, how to improve your credit rating, which mortgage lenders or institutions to choose, etc. Mortgage financing specialists like Vahe Hayrapetian can also give you a good idea on what to expect in owning your first home. Those without the necessary preparations may get overwhelmed by the enormous work involved in home ownership.

Sweat the Details

Buying your first house can be the realization of your dream. As you look at the big picture, be mindful of the little particulars also. Home purchase is a big investment, and even the smallest oversight can come back to haunt you. Learn more about first home buyer loans by visiting portal. hud. gov/hudportal/ HUD? src=/topics/buying_a_ home