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Loan Options for First Time Buyers

Buying your first home can be daunting. Use one of our many tailored loan products to help you achieve your homeownership goals.

Low Down Payment Mortgage Loans for First Time Buyers

If you’re not eligible for a no money down mortgage, a low down payment mortgage is the next best thing. These loan programs also put home ownership within reach since you don't need as much cash out-of-pocket. Typically, these mortgage loans require as little as 3% to 5% down.

Get a No Money Down USDA Loan

Another zero down payment option is a USDA loan guaranteed by the US Department of Agriculture. These loans also feature no mortgage insurance, but you will pay a 1% upfront loan fee as part of your closing costs. USDA loans accommodate moderate-income families, so you can’t earn more than 115% of the median income for your area.

To qualify for this mortgage program, you must purchase a property in an eligible rural area. But this doesn’t mean you have to live in an isolated area. Some suburban communities on the outskirts of metropolitan areas qualify as “rural.” Homes in these areas are eligible for USDA financing.

Get a No Money Down VA Home Loan

If you’re a veteran, a current service member or the eligible spouse of a service member, there’s a good chance that you qualify for a zero down VA loan. This loan option is guaranteed by the Department of Veterans Affairs. If you’re approved, you can purchase your first home with no money down and no private mortgage insurance. You might be able to roll your closing costs into the loan, too, which can reduce your out-of-pocket expense. There’s no minimum credit score required for a VA loan, but you typically need a credit score at least between 620 and 640, depending on the mortgage lender.

Find Your Best First-Time Buyer Program

Start your journey to homeownership right by talking to an expert lender on the Bellco Home Loans team.

Find a Loan Officer