The first mortgage you hear about is not necessarily the one you should use. First-time buyers may have access to several financing paths, and the best option depends on credit, income, debts, property, location, veteran status, available funds, and long-term goals.
Conventional loans
Conventional mortgages are not insured by FHA or guaranteed by VA. Qualified buyers may have low-down-payment options, and private mortgage insurance may apply when the down payment is below certain thresholds.
FHA loans
FHA loans are made by approved lenders and insured by the Federal Housing Administration. They can provide flexibility for some borrowers, but include program-specific mortgage insurance and property requirements.
VA loans
Eligible veterans, active-duty service members, National Guard/Reserve members, and certain surviving spouses may qualify for VA financing. Benefits can include no-down-payment structures for qualified borrowers, subject to entitlement, occupancy, underwriting, and other requirements.
USDA loans
USDA financing may be available for eligible borrowers purchasing qualifying homes in eligible areas. Income and geographic requirements apply.
Down payment assistance
DPA is often paired with an approved first mortgage rather than acting as a standalone mortgage. Programs can include grants, forgivable loans, or second liens.
Compare the complete structure
Do not choose solely by down payment or advertised rate. Compare cash to close, monthly payment, mortgage insurance, lender fees, property eligibility, and how long you expect to keep the loan.
A mortgage advisor with access to multiple lenders can compare several structures rather than forcing every buyer into one program.
Which loan type fits your situation?
Start with veteran status, credit, income, debts, available funds, and where you want to buy.
Educational information only. Mortgage qualification, credit scoring, loan programs, rates, property requirements, down payment assistance, and underwriting standards vary. This content is not a commitment to lend, credit-repair advice, legal advice, or a guarantee of loan eligibility.