See all posts
hero image

3 Mortgage Programs First-Time Buyers Should Know About

By Bryan Scott • 05/20/2025

One of the biggest challenges for first-time homebuyers isn’t just finding the right home, its understanding which mortgage program fits their situation best. From credit scores to down payments, each loan type has different benefits. Knowing your options can help you make a confident decision.

 

Let’s look at the three most common mortgage programs first-time buyers in Texas should know about: FHA, VA, and Conventional loans.

  1. FHA Loans – Flexible and First-Time Buyer Friendly

FHA loans are backed by the Federal Housing Administration and are designed to help buyers with lower credit scores or limited down payment funds.

 

Key Benefits:

  • Down payments as low as 3.5%
  • Lower credit score requirements (as low as 580)
  • More flexible underwriting guidelines

FHA loans are a good fit for buyers with average credit or lower savings who want a low barrier to entry. That said, FHA loans require mortgage insurance, which can increase monthly payments.

  1. VA Loans – A Powerful Benefit for Veterans

VA loans are available to eligible veterans, active-duty service members, and some surviving spouses. Backed by the Department of Veterans Affairs, these loans are one of the best benefits of military service.

 

Key Benefits:

  • No down payment required
  • No private mortgage insurance (PMI)
  • Competitive interest rates

VA loans are a good fit for veterans or active-duty buyers looking for maximum affordability and long-term savings. To get approved for a VA loan you’ll need a Certificate of Eligibility (COE) and must meet service requirements.

  1. Conventional Loans – Great for Buyers with Strong Credit

Conventional loans are not backed by the government and typically offer the best rates for well-qualified borrowers.

 

Key Benefits:

  • Down payments as low as 3% (for first-time buyers)
  • No upfront mortgage insurance required
  • Potential to remove PMI when equity reaches 20%

Conventional loans are a good fit for buyers with good credit and steady income who want long-term savings on interest and insurance.  Higher credit score and income requirements apply compared to FHA or VA loans.

 

The best mortgage program is the one that fits you and your specific situation. Whether you're just starting your journey or ready to get pre-approved, I’ll help you compare options and choose the smartest path.

 

📞 Let’s talk—schedule a free 30-minute consultation HERE and we’ll build your personalized plan.

 

#FirstTimeHomebuyer #MortgagePrograms #FHA #VAloans #ConventionalLoan #BryanScottLoans

 

Bryan Scott                                (512) 864-4866                          bscott@gfmortgages

< Older Post