First-Time Homebuyer Loans: Special Programs and How to Qualify

For most of us, obtaining a mortgage is a crucial step in purchasing a first home. There are a variety of financing options available to first-time homebuyers—including conventional mortgages and government-backed loans from the Federal Housing Administration (FHA) or the U.S. Department of Veterans Affairs (VA). Understanding how they work can point you in the right direction, help you find the best lender for you, and save youa significant amount of time and money. Here is what you need to know.Key TakeawaysWhen you apply for a mortgage, lenders will evaluate your creditworthiness and ability to repay, based on your income, assets, debts, and credit history.Among the decisions you'll have to make are between a fixed vs. adjustable interest rate, the length of the loan term, and how large a down payment you can afford.Depending on your circumstances, you may be eligible for a Federal Housing Administration (FHA) loan, a U.S. Department of Veterans Affairs (VA) loan, or another type of...