FIRST TIME BUYER PROGRAMS Conventional loans

First Time buyer loan limit is $300,000
For owner occupied property only: There are several programs geared for first time buyers. The name "First time buyer" attached to loans generally carries restrictions, and not necessarily a lower interest rate. These are geared for buyers who do not have a large down payment saved. Most programs allow purchasers to buy a home with as little as a 3% or 5% down payment. Addie Mae currently provides loans for first time buyers in fixed rate programs and adjustable rate mortgage programs with as little a nothing down.

FIRST TIME BUYER LOANS: These are conventional programs implemented by the secondary market to spur more first time home buyer activity. Generally they require 5% down, but there are several programs you can get with 3% down from your own funds, and 2% from a gift from family to make the entire 5% down payment. There may be income restrictions, or property location restrictions. This program waives many of the normal underwriting guidelines that trip up first time buyers, such as a minimum 2 years on the job, or cash reserves needed after closing. The rate is at current market rates. There really is no other benefit to this program, except the low down payment requirement.

97% LOANS: This loan is available to 1st time borrowers who currently earn less than 170% of the HUD median income for the area. There are only a few lenders offering a true 3% down payment loan. The only type of loan allowed is a fixed rate loan at market rates. Borrowers only need to come up with a 3% down payment from their own savings (cannot be a gift) Borrowers are required to have 1 months worth of house payments in cash reserves after closing. Satisfactory completion of a home buying education program is required.

100% MORTGAGE:
Available to 1st time borrowers who have additional credit depth over and above 4 trade lines of acceptable size with a positive credit rating. Very little derogatory credit is allowed. This type of loan can be a fixed rate or variable rate loan at market rates. Borrowers only need to come up with their closing costs from their own savings (cannot be a gift). Seller's contribution to closing costs is limited to 3% of sales price. Borrowers are required to have 1 months worth of house payments in cash reserves after closing.

May not own any other real property
Special loan fee reduced by 1 point .
FREE APPRAISAL. (appraisal fee prepaid but credited to other closing costs at close)
May be required to have automatic payment withdrawals.
Minimum down payment for this program is 0% for single family homes and 5% for condos or townhouses.
The loan must meet mortgage insurance requirements. PMI may not be required if loan is split to 1st & 2nd.
Co-signors are allowed, but they must occupy the property.
Borrowers must document a good rental payment history for the last 12 months.