First Time Home Buyer's Down Payment

FHA Mortgage

An FHA mortgage, backed by the federal government, allows first-time homebuyers a chance to become homeowners without a traditional twenty percent down payment. As long as the lender has a credit score of at least 580, they can take out a loan for up to 96.5 percent of the total value with a 3.5 percent down payment. If the buyer’s credit score is lower than 580, they must put down ten percent to buy a home. The down payment money used to buy a home with an FHA loan can come from a gift from another friend or family member, be a grant given to the buyer from the state, or come from anywhere else. This loan is one marketed to and issued to low-income families with a low credit score. This kind of loan is issued to those who meet the requirements that are largely the same in most states.

Continue reading to learn information about VA mortgages.