There will be a time in your life when you would consider a first loan. A first time home loan is generally contracted by people wishing to buy a home, so getting your first loan will be an important step in your life.
In order to have your first time home loan you can consider FHA loans which will provide you with mortgage insurance. When it comes to a home loan the good thing about FHA loans is that you will only need to pay 3.5% down payment. In order to have your first loan and be qualified for an FHA loan, your credit history must be clean and you have to earn a certain income.
You can also resort to conventional loan products regarding your first loan. Thus these products may require low down payment (instead of the usual 20%). Another first time home loan solution is the piggyback loan. The catch is that your down payment and this loan are combined to reach the 20% conventional mortgage demands for. Getting your first loan thus can be easy if you know just how you can get one contracted very easily.
There is also another path for your first time home loan, private mortgage insurance. You must be aware of PMI when considering buying a house, for you may need it if you apply for low down payment mortgage. You will be able to have your first time home loan and this is usually necessary for mortgages with down payment that is less than 20%. What’s best about this is that if you have your mortgage paid reaching 20% home equity, you will be allowed by most lenders to have your insurance canceled. Always make sure to consider the odds before engaging into something like this.