When we do something for the first time, It is always difficult . We are not experienced to do everything correctly. This is why you need help from a  professional who can guide you through the process. Let us explore the options you have as a first time home buyer.

Many first time buyers do not have enough down-payment. What to do when you have very low down payment.Well there are options available for you. We are going to discuss a few of  them here.

There are some grants for first time home buyers from government, community organizations and many other non-profit organizations. Usually, there are some income limit restrictions for some grant programs. These programs, usually, come with some conditions as well. For example, one of the conditions needs you to live at the place you are buying for certain amount of time. Usually, few years.

Some lenders provide you down-payment assistance programs. For example, when the minimum down-payment is 3% for a conventional loan program, as a borrower you pay only 1%. Rest of the 2% down payment will be provided the lender to you as an assistance. In many cases after certain numbers of years you do not need pay that amount back. This program is not always available from all lenders.

There are few programs are very popular among borrowers with low down payment. One is FHA that requires a minimum of 3.5% down-payment. You pay high mortgage insurance with the FHA program , but your interest will be lower than conventional loans.  The advantage of the FHA is that you can buy a two family house with only 3.5% down payment. But if your loan amount is higher, you need to put at least 5% down-payment .FHA  is really an excellent option for first time home buyers with low down-payment a lower credit score. 

For some people whose income limit do not exceed the set limit set by Fannie Mae and Freddy Mac HomeReady or HomePossible might be the best option. These programs are very flexible and easy to qualify. You need only 3% down-payment for a single family primary residence. If you do not qualify with your income only, it allows to use the income from a boarder or a roommate.   These two affordable programs offer low interest rates and flexibility for first time home borrowers.