Today, first time home buyers may face a number of challenges when it comes to purchasing property, not the least of which is soaring student loan debt among younger buyers. The good news is, the right first time buyer programs may alleviate some common roadblocks to buying for those who lack ideal credit or find themselves saddled with a challenging debt-to-income ratio.
FHA loans can be a great option for first time buyers who qualify. While conventional loans require a high credit score and low debt-to-income ratio to qualify, and only offer the lowest rates to the best candidates, FHA loans can be had with a credit score as low as 500. That said, credit scores ranging from 500-579 will require a down payment of 10%, while buyers with credit scores of 580+ could qualify with as little as 3.5% down.
VA loans are limited to service members and the application process can be lengthy, but you could end up with a loan even if you lack a down payment or an ideal credit rating.