Mortgages backed by the FHA, Fannie Mae’s HomeReady, and Freddie Mac’s Home Possible offer significant benefits for first-time homebuyers. FHA loans require a minimum down payment of 3.5% with a credit score of at least 580. Fannie Mae allows down payments as low as 3% and considers various sources for these funds. Freddie Mac also offers a 3% down payment option with similar income restrictions. First-time buyers should check credit reports, save for down payments, and avoid new credit to improve their chances of qualifying for loans.
Continue to full article