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First time homeowner loans are available through a variety of mortgage lenders such as banks and credit unions. There are loans that are specifically designed for first time homeowners. These loans typically require a low down payment and may require a mortgage education class. A mortgage education class informs a borrower of the different types of loans that are available. The class also educates a borrower of the maximum loan that they may be able to afford and what criterion mortgage lenders look at when approving first time homeowner loans.
There are also HUD loans that are available to first time homeowners. This type of loan is made possible through a government program. In order to initiate a HUD loan, the borrower would contact a mortgage lender and express interest in this type of loan. A HUD loan has specific requirements such as maximum borrower income amount and maximum home loan amount.
There are some states, counties and towns that have special programs available for first time homeowner loans. These programs can vary widely from loan education classes to down payment assistance. These types of programs encourage home ownership and responsible borrowing. The program requirements can vary widely but typically have requirements for maximum income, maximum home loan and sometimes have a minimum time that the borrower must reside in the home.
|Jennifer Mathes, Ph.D.|