| It’s a relatively expensive time to buy a home, and an especially uncertain time to be a first-time homebuyer. In a housing market that’s got a lot of us apprehensive, it can be hard to discern what to buy, or whether it’s a good time to buy at all. Luckily, the US government does recognize this and loves to prop up the good ole’ “American Dream” of buying a home, no matter how expensive it gets, apparently. Subsequently, there are lots of programs out there designed specifically to help first-time homebuyers navigate this process. So, what are our options? FHA Loans: The Federal Housing Administration (FHA) exists to help protect lenders against losses by insuring their mortgages, but they also help out first-time homebuyers who might not qualify for a conventional loan. With an FHA loan, you can put down as little as 3.5%, and have a credit score as low as 580. These loans require a debt to income ratio of less than 43%, a steady history of employment, and private mortgage insurance (PMI) of course. Fannie Mae loans: The difference between an FHA loan and a Fannie Mae conventional loan is that instead of being backed by the FHA, the loan is insured by the lenders themselves. FM loans have slightly more stringent requirements than their FHA alternative, requiring a credit score of 620+, but also allowing a slightly lower down payment of 3%. PMI is still required, but it can be canceled once you’ve surpassed having 20% equity in the home. Freddie Mac loans: Another low down payment (3%) option, loans that conform to Freddie Mac’s standards are slightly more particular than Fannie Mae’s, but still a solid option for first-time buyers. Requirements include a higher credit score of 660, 3% down, and an income that’s no more than 80% of your local median. Good neighbor next door loans: If you’re a teacher, law enforcement officer, emergency medical technician or firefighter, you might qualify for this really cool opportunity to own a home. Essentially, the US Department of Housing and Urban Development (HUD) selects certain properties in “revitalization areas” and lists them exclusively through this program, offering applicants 50% off the home’s list price, only requiring a credit score of 500, and a down payment as low as $100. What’s the catch? Not much, you just have to agree to live in the property for at least 36 months as your primary residence. VA loans: VA loans are loans backed by the US Department of Veterans Affairs. They offer the opportunity for active and retired military members and their spouses to qualify for a home loan with a 0% down payment, no credit requirements (although lenders may have some), verifiable income, and pay a loan origination fee of up to 2.3%. USDA loans: USDA loans are 0% down payment, 100% funded loans that are backed by the US Department of Agriculture and available to qualified applicants living in a “designated rural area.” The catch? You’ll need a credit score of roughly 640+, pay a 1% “funding” fee, and a 0.35% annual fee baked into your payments. Take this related lesson on this topic and earn Dibs 🟡 while you're at it: | 
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