Anyone who has not owned a home in the past 3 years can be considered a first time home buyer, regardless of age.  There are various state and local programs that offer incentives, grants or assistance to first-time home buyers, so it is recommended that you do your homework and check your area before you buy.

If you’re able to put down 20% or more of the purchase price for a new home, you can avoid the cost of mortgage insurance.  I know this may sound impossible, so here are some other options that you can look into.

Conventional 97, HomeReady (Fannie Mae), or Home Possible (Freddie Mac)

• 3% downpayment (FHA loans require 3.5% downpayment).
• Mortgage insurance is mandatory, but it can be cancelled once you reach 20-22% equity ownership.
• Gift funds can be used for the downpayment.
• Cancelable private mortgage insurance

As a military member or veteran, you will have access to VA Loans – but keep in mind, that only some lenders offer these loans, so make sure you check all options.

VA Loans

• Zero downpayment
• No ongoing mortgage insurance
• Lowest interest rates, closing costs and low credit scores accepted.

HUD Special Programs

Designed to assist teachers, (K-12), firefighters, law enforcement and emergency personnel.

• 50% discount on the purchase price of home in “revitalization area.”
• GNND: Good Neighbor Next Door, Federal loan.

USDA Loans

• Zero downpayment
• Property must meet specific USDA requirements, be a primary residence, and in a rural community of not more than 35,000 in population.