If you are a first-time home buyer there are several loan options to consider. Let’s begin with an FHA loan. A federally-insured home loan that allows lenders to offer a lower down payment and lower closing costs. FHA loans are also easier to qualify for because they allow buyers with lower credit scores and debt-to-income ratio that are less than ideal to qualify for a loan with a down payment as low at 3.5 percent. If you qualify for down payment assistance, so you could quite possibly end up with no down payment at all.

Another home loan for rural areas is a USDA backed loan. This program assists approved lenders in providing low to moderate income households the opportunity to own decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural home buyers.

For those who meet service requirements, a VA home loan Guaranteed by the US Department of Veterans Affairs is ideal. This type of loan is available to Service members, Veterans and eligible surviving spouses, often requiring no down payment at all.

Banks and financial institutions like Fannie Mae and Freddie Mac have a lot of experience providing mortgages to first-time home buyers. Some lenders might even offer loans designed for those with poor credit scores or other special circumstances. Do a little research to find out which home loan is right for your financial situation.