Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Home Loans and Real Estate and other Real Estate topics.
Many financial institutions that offer home loans now offer affordable mortgage options and first time buyer loans. These loans are designed to help borrowers who don't have a lot of money for a down payment or who have blemished credit get approved for loans. Most private lenders still require at least 3-5% down to approve a loan. There are also federal mortgage insurance programs, such as that offered by the Federal Housing Authority, that have low-down payment options. While these programs have done a lot to help people achieve their dream of homeownership, interest rates on low-down payment loans or loans for those with less than perfect credit tend to be higher than conventional loans. A good source of information on first time buyer loans is the U.S. Dept. of Housing and Urban Development's Web site. Search for the guide "100 Questions and Answers About Buying a New Home."