The 3 Best Places to Get a First-Time Home Loan

Taking out a home loan as a first-time buyer can be exciting and overwhelming. You may find yourself spoiled for choice, which is an excellent problem to have. However, dealing with too many options can lead to analysis paralysis. Learn what first-time homebuyer loans are and the best places to get them. What Is a First-Time Homebuyer Loan? Like grants, first-time homebuyer loans are a form of homebuying assistance designed to encourage homeownership. These mortgages have lenient requirements for applicants with low incomes, credit scores and cash on hand. They also come with lower interest rates. “First-time homebuyer” can be a misnomer. If you haven’t owned a primary residence or aren’t married to someone who has owned a primary residence three years before your application, you may still be eligible for mortgage programs for first-timers. What Are the Best Places to Get a First-Time Home Loan? The best places to get a first-time home loan are mortgage lenders that offer various suitable programs for eligible homebuyers. These businesses must also have licenses to operate in most states and charge reasonable closing costs. Of the dozens of mortgage lenders that meet these criteria, these three fit the bill best. 1.   Assurance Financial Assurance Financial is a full-service residential mortgage banker licensed in most states that closes about 9,100 loans annually. The multi-award-winning company has over 20 locations nationwide and a team of 100 mortgage loan officers. Unlike larger first-time homebuyer mortgage lenders, Assurance Financial handles everything in-house. It also leverages state-of-the-art technology to streamline the entire application process online. Assurance Financial has helped first-time homebuyers secure financing for over 20 years. The company offers multiple options: •  Conventional mortgages — such as Freddie Mac Home Possible and Fannie Mae HomeReady •  FHA loans •  USDA loans •  VA loans •  Construction loans Assurance Financial’s diverse selection of home loan programs speaks volumes about its dedication to finding the best loan for first-time homebuyers with distinct needs and preferences. The company can even help you take out a jumbo loan or finance a house as a self-employed person. This independent mortgage banker’s vast array of offerings should give you confidence in the advice you receive during preapproval. Discover the various loans you qualify for based on your credentials, compare them accordingly and learn about the interest rates you may receive. 2.   Rocket Mortgage Rocket Mortgage is the largest retail mortgage lender in the United States, originating a total home loan volume of $1.76 trillion. This Dan Gilbert-founded company has a rich history of innovation and etched its name into history as one of the pioneers of online mortgage lending in the late ‘90s. This prolific mortgage lender offers programs with extremely low down payments, high base credits and reduced mortgage insurance pricing for first-time borrowers, especially those living in metropolitan areas. If you’re looking to lower your upfront costs, you can choose from these 30-year conventional fixed-rate mortgages: •  ONE+ By Rocket Mortgage •  Purchase Plus •  BorrowSmart Access •  HomeReady •  Home Possible You can also qualify for a closing credit of up to $10,000 when you buy Rocket Homes. If you’re in the market to save on interest, choose Rocket Mortgage’s 15-year fixed and adjustable-rate mortgages. The company also offers FHA and VA loans — programs with laxer credit score requirements. Though Rocket Mortgage doesn’t have physical branches, this digital-only lender prides itself on facilitating faster closings than the industry average. 3.   Guild Mortgage Guild Mortgage is a first-time homebuyer mortgage lender through and through. It’s one of the pioneers of FHA loans, funding the American Dream since the 1960s. This industry institution has more than 700 branches across most states. Guild makes it a mission to offer mortgages that meet the ever-changing needs of aspiring homeowners. Aside from offering conventional, FHA, VA, USDA and construction loans, this mortgage lender also extends special financing to first-time homebuyers who want to: •  Afford a house with low or moderate income. •  Pay 0% or 1% down. •  Live in a manufactured home. •  Make an underserved community home. •  Be a homeowner despite having no traditional credit score. Guild Mortgage offers fixed-rate and ARMs. You can lock in your interest rate with the company for 120 days — longer than most lenders allow — to shop around with peace of mind. Take Out a First-Time Homebuyer Loan with the Best You can’t go wrong with any of these mortgage lenders. Still, it’s wise to request several loan estimates to compare rates, closing costs and expected monthly payments so you can make an informed decision.