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11 programs that help first-time homebuyers get a mortgage

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  • To qualify for a conventional mortgage, you typically need a 620 credit score, 36% debt-to-income ratio, and 10% down payment.
  • But there are programs that help first-time homebuyers get mortgages even if they don’t meet conventional loan standards.
  • You may be eligible for a government-backed mortgage, a conventional loan backed by Fannie Mae and Freddie Mac, or a program specific to your state.
  • You can also get a special loan if your home requires significant repairs after moving in.
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Buying your home may feel like an insurmountable challenge, because you have to meet multiple requirements to qualify. Conventional mortgages typically mandate at least a 620 credit score and 36% debt-to-income ratio. Many lenders also ask for at least 10% toward a down payment.

These requirements can be tricky for first-time homebuyers to meet, especially if you’re young. Thankfully, there are plenty of programs designed to help out first-time homebuyers.

You do have to meet some conditions to qualify for such programs. But when it comes to your finances, these loans and grants have more lenient requirements for getting a mortgage than conventional loans.

Here are 11 programs for first-time homebuyers:

Unlike conventional loans, government-backed mortgages are guaranteed by federal agencies. If you default on your payments, then the agency pays the lender on your behalf. This guarantee allows lenders to offer you a mortgage even if you don’t meet the usual conditions for a conventional loan.

FHA loan

With a Federal Housing Administration loan, you only have to put 3.5% down. 

Lenders

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