Now is the perfect time to buy your first home!
There are three First Time Home Buyer Program 2025 HomeReady®, Home Possible® and the FHA program.
FHA announced a new policy to address risk. As a result FHA changed the minimum credit score for new borrowers.
- FHA requirements new borrowers will now be required to have a minimum credit score of 580 to qualify for 3.5% down payment
- Borrowers with less than a 580 credit score will be required to put down at least 10%
- As a result the minimum credit score for an FHA loan is 500
Finally this has allowed the FHA to better balance its risk and continue to provide financing for home buyers.
First Time Homebuyer Programs
Home Ready and Home Ready Renovation are two conventional loan programs created by Fannie Mae. They are affordable given their smaller 3% to 5% down payment requirement. Home Ready mortgages are designed for low to moderate-income home buyers and are well-suited for first-time home buyers.
- Lower interest rate
- Lower mortgage insurance
- Minimum 620 credit score
The program does have income limits.
Home Possible and Home Possible Advantage are two conventional loan programs created by Freddie Mac. They are affordable given their smaller 3% to 5% down payment requirement. Home Possible mortgages are designed for low to moderate-income home buyers and are well-suited for first-time home buyers.
- Lower interest rate
- Lower mortgage insurance
- Minimum 620 credit score
The program does have income limits.
