4 First Time Home Buyer Loans for 2012

Before the first week of the year ends, let's look at some options for great first time home buyer loans. Multiple choice tests can be easy, or very difficult in their simplicity. With only a few choices, you know the answer is in there. Sometimes finding it can be mind boggling. However, when it comes to first time home buyer loans, the choices are pretty straightforward. As a first time home buyer you're not limited simply because it's your first house. Things like down payment, credit scores and income may limit you, but simply being a first time buyer will not.

So, let's look at 4 first time home buyer loans and what they might mean for you.

1. Standard FHA Loans - Actually called the FHA(b), it's the one a lot of first time home buyers end up using. The down payment requirement is low and the terms are flexible. Plus the credit guideline used by most lenders for FHA mortgage loans are pretty forgiving.
2. HomePath Financing - Buy a Fannie Mae-owned home at a great price, and only be required to to put in a 3% down payment. HomePath sounds too good to be true, but it's not. Search the HomePath website and you'll see a lot of homes in lower price ranges. Simply being Fannie Mae-owned (and Fannie Mae doesn't want to own homes) means you're likely to catch a break on price. Plus Fannie Mae often offers incentives like expanded seller concessions.
3. FHA 203k "Home Improvement Loan" - You can buy your first house and turn it into your dream home by making upgrades, improvements or repairs. Because it's from FHA, the down payment is low (although it is based on the total loan, including the repairs). For about $6 a month more for every $1,000 you finance, you can make improvements like adding a deck, remodeling a kitchen (including new appliances) or repainting the house. FHA 203k is a great option for that first house.
4. USDA Rural Development - This is a 100% financing option - also called a zero-down mortgage. It requires no down payment. The "catch" (isn't there always a catch?) is that the property must meet the USDA definition of rural. No, that doesn't mean you have live out in the sticks. You might be surprised at the areas covered by rural development.

These are just a few mortgage loan options available. While there are no specific first time home buyer loans, you can take advantage of some great options to buy your first house. Learn more about first time home buyer loans with the free eBook "The Essential Guide to Buying Your First Home" at the button below.

(multiple choice photo: Flickr user Alberto G.)