FNMA and FHLMC has several loan programs with features designed to benefit First Time Home Buyers.

Buying a home can be a daunting experience -- even for a savvy veteran. When it comes to a first time home buyer, it's downright scary. It can keep you awake all night. There's a whole new language to learn and your personal financial life is hanging out for a bunch of strangers to examine and rule on. It's confusing and intricate with a million things to remember and follow up on. Not to mention the basic underlying questions: Is this house really worth the money? Will the value go up or down? Am I buying in the right neighborhood? What if the house falls down soon after I buy it? Am I doing the right thing? Should I just rent for another year? In the light of day, however, it's a business transaction that thousands go through every day. If they can do it, so can you.

Another way to get some, if not all, of your closing costs paid is to have the seller of the home contribute a percentage to be applied towards your closing costs. The most common is a 3% contribution and most contracts have a provision for this. Ask your realtor how to structure your contract.

80/20 –no money down combination program. Eliminates mortgage insurance with 80% First Mortgage, 20% Second Mortgage.

Many of the first time homebuyer programs require as little as $500 from the borrowers own funds. The rest can come from gifts, grants, or seller concessions.

FHA – often the best choice in first time home buyer programs. Requires 3% down and upfront mortgage insurance.

Fannie Mae My Communtiy Mortgage 97 or 100% is a great loan for the first time homebuyer with little or no down payment as well borrowers with little or no credit history.

A first time home buyer may also qualify for the Down Payment Assistance Programs as well by qualifying for any owner-occupied home loan from a lender who accepts grant funds from a nonprofit organization, and by purchasing a participating home from a seller who agrees to make a contribution to the program after the home closes.

A first time homebuyer is someone who has NOT owned a home in the last three years.

The Texas First Time Homebuyer Program provides below market interest rate mortgage loans through a network of participating lenders to eligible families and individuals who are purchasing their first home or who have not owned a home in the past three years.

There are also loans where the first time homebuyer may opt to roll the closing costs into the loan.

103% - allows 3% of the purchase price to be rolled into the loan.
107% - allows 7% of the purchase price to be rolled into the loan.