What First Time Home Buyer Options Should I Consider?

Thinking of buying a home and want to know what first time home buyer options there are? I'm proud of you! You're taking that first step in buying a home by educating yourself so you can make an informed decision. Anytime you're going to make a major purchase, you should educate yourself. When my wife and I were going to buy a new TV, we were suddenly stopped. Everything in the store were flat screens and I didn't feel educated enough to make a choice. So we went back home and started doing our research.

Here are a few first time home buyer options to consider:

• Housing Options
  
• Loan Options
  
• Down Payment Options
  

Housing Options

Single-family homes. Most first time home buyers are interested in this type of purchase. It gives you the most flexibility with not quite as much work as building your own home or perhaps a foreclosure home.

Condominiums. With a condo, you own the living area but you don't own the land. You may have association dues and association rules to abide by. You may not have as much flexibility, but you have more freedom. You don't have to worry about plowing your driveway (if you living in the north) or mowing your lawn. You don't have to rake leaves either.

Building Your Own Home. This is like the single-family home, but instead of selecting a home already built, you now design and build your own home.

Foreclosure Home. This is a nice option for those who are willing to work for it. You can buy a house for a lot less money. Usually you will have to work on the home to get it the way you may want it. The savings makes the work worth the effort.

Loan Options

FHA Loan. This is one of the best loan options for first time home buyers. That's because it has a low down payment requirement and usually a low interest rate. There is mortgage insurance you will have to pay. But all the plus's with this type of loan makes it merit the extra cost.

VA Loan. Not everyone can get this type of loan. But if you are in the military or have served in the military, this first time home buyer options is the cat's meow.

Conventional Loan. With this type of loan program you have a bigger down payment. But it provides some other options that the other programs do not. For example you may have plans of selling your home in a short time period so you may want an interest-only loan. Or you may want to choose an ARM to get a lower interest rate knowing you will change to a fixed-rate loan in the future. I really don't recommend this for first time home buyers, but it is one of the first time home buyer options that some may look into.

If you're selecting a Loan Option, make sure you know what you're getting and what it's going to cost you.

Down Payment Options

Grants. There are several government grants available on the federal, state, and local levels that you may qualify for. Keep in mind, these take time, so don't be in a hurry to close on that first home.

Gifts. An FHA mortgage will allow gifts for a down payment. Which can be a very useful option for those who can't qualify for grants or other assistance and have family or friends who would love to help.

Assistance. There are charities that will provide assistance. These too take time to obtain, so be sure to allow plenty of time before you close on that first home.

These are just a few first time home buyer options for you to think about. Which option fits your needs the best, you will have to decide. Pick which option you like best and then study up on it. Don't become overwhelmed. This is worth all the time you put into it.

Jeffrey Ragan has several years of experience helping people reach their goals and wants to help you learn more about first time home buyer options and other helpful information on their website, First-Time-Home-Buyer-Solutions.com.fore