Complete Mortgage Document Checklist: Loan Documents for New Construction

Owning a home may be a big part of your dreams and, thankfully, to make that dream more accessible, there are first-time homebuyer grants, loans, and other programs to help. Ready to take the plunge into homeownership? Check out these 10 first-time homebuyer incentives that can launch you into a new chapter of your life.

1. Federal Housing Administration (FHA) Loan

If you don't qualify for a traditional loan with a conventional lender, the FHA offers an incredible solution — low down payments and more lenient credit requirements that make their loans perfect for those just starting out in this next big step. With an FHA loan, your dream of homeownership could be closer than you think. Even those with lower credit scores may be able to qualify and it only requires a a small percentage on down payment - just be prepared to pay extra on mortgage insurance. You can see if you qualify for an FHA loan on their website.

2. United State Department of Agriculture (USDA) Loan

With USDA loans, buying a home is made easier for low and middle-income families. To qualify for this loan, you don’t need to have a down payment, and, believe it or not, you don't have to purchase a farm. Just make sure the property you are looking at for your new home lies within an eligible area as determined by the USDA. Now that's something worth rooting for. See all the USDA grants and loans on their website.

3. Veterans Affairs (VA) Loan

For those who have served our country in the military, VA loans provide a great opportunity to purchase and own a new home. Without needing any down payment or mortgage insurance, these special loans make homeownership accessible, although they do require a VA funding fee, which can be included in your monthly payments. But here is the good news, some service members are exempt from paying the VA funding fee, making homeownership even more attainable. See all the ins and outs of this homebuyer loan on the U.S. Department of Veterans Affairs page.

4. FHA 203(k) Loan

Buyers, if you're looking to purchase a "fixer-upper," look no further than the FHA 203(k) loan. This option allows first-time home buyers to borrow up to a certain amount for renovations and bundle them into their mortgage – all with just a small percentage down. If this is the route you want to go, make sure you work with an experienced contractor that knows how to maximize this special loan. Get all the up-to-date details about this homebuyer loan on the U.S. Department of Housing and Urban Development site here.

5. Good Neighbor Next Door

The U.S. Department of Housing and Urban Development (HUD) has an amazing program for public service first-time home buyers. The Good Neighbor Next Door Program offers 50% off a qualifying property in select revitalization areas to law enforcement officers, firefighters, emergency medical technicians, and teachers but there's a small catch. You must commit to live in your new home for at least three years as part of this great deal.

6. Fannie Mae or Freddie Mac

Picture Fannie Mae and Freddie Mac as the dynamic duo in the world of conventional loans. These government-sponsored superheroes lay down the law for borrowers while playing matchmaker to lenders in the thrilling secondary mortgage market. When an initial lender needs to offload a loan, our valiant champions step up to keep the financial world spinning smoothly. Depending on your credit score, you may be able to get your dream house with a lower down payment. But if your down payment is under a certain percentage, you might want to brace yourself for some private mortgage insurance (PMI) expenses.

7. Fannie Mae’s HomePath ReadyBuyer Program

Imagine stepping into your dream home with the help of Fannie Mae's HomePath ReadyBuyer program, designed just for first-time home buyers like you. Unlock the door to your future by completing an enlightening online course, and get rewarded with a percentage toward your closing costs for that perfect, previously foreclosed hideaway.

8. Native American Direct Loan (NADL)

For veterans where they or their spouses are Native American, Veteran Affairs offers the Native American Direct Loan program that could be the key to your dream home on federal trust land. No down payment, no mortgage insurance, and low closing costs are part of the deal. All you've gotta worry about is a funding fee that can be blended into monthly payments to the VA.

9. Energy-Efficient Mortgage (EEM)

Unlock the power of an Energy-Efficient Mortgage program to transform your humble abode into a green, energy-saving haven. This magical mortgage opportunity, backed by the FHA, unites the cost of eco-enhancements like solar panels, insulation, or a shiny new furnace with your mortgage without the stress of a bigger down payment. Your mortgage payments may increase but watch in awe as your energy costs shrink away, bringing balance back to your financial universe. Join other homeowners on this sustainable adventure and pave the pathway to homeownership.

10. State and Municipal Grants and Programs

In addition to these federal opportunities above, there's also a treasure trove of state and municipal incentives waiting for you. From state-run loan programs to precious assistance with down payments and closing costs, they've got you covered. Just ask your trusty real estate agent or local HUD-approved housing counseling agency to help you navigate these exciting opportunities as adventure and homeownership await you.

The dream of owning your very own home is absolutely within reach. All you gotta do is some solid detective work to uncover those oh-so-helpful incentives for first-timers like yourself. If you’re ready to take the plunge and buy your first home, don't go at it alone. Take the first step to work with Centex and explore one of our affordable new home communities today.