Below is a sponsorship partnership with PSECU. Buying your first home is one of the biggest milestones in life. However, price tags can be out of reach, especially with rising prices and high interest rates. Fortunately, many lenders now have affordable mortgage options that can reduce upfront costs and make your first home more…
Below is a sponsorship partnership with PSECU.
Buying your first home is one of the biggest milestones in life. However, price tags can be out of reach, especially with rising prices and high interest rates.
Fortunately, many lenders now have affordable mortgage options that can reduce upfront costs and make your first home easier to get. So if you want to buy a home right away, I recommend you check out the most affordable mortgage options for first-time home buyers, ranking by cost and quality of service.
1. PSECU
PSECU makes home purchase affordable and easy to use, especially for first-time home buyers with an affordable mortgage option.
This digital-first credit union has competitive interest rates and a special first-time home buyer program that allows you to raise funds for 100% of your property purchase price without the lowest down payment requirement. As a credit union, PSECU is fully member-owned, non-profit, which means fewer fees to get more benefits, which can help you achieve more and make the most of your money.
Key Products
- Special plan for first-time home buyers that allows up to 100% financing without private mortgage insurance
- Customer Service via chat, digital banking message or phone call 24/7
- No application fee, initiation fee or hidden fee
2. Bank of America
As one of the country’s major banks, Bank of America’s mortgages are a nonsense entry point for real estate. It offers a wide variety of mortgages with lower interest rates relative to the rest of the market.
This is a reliable option for existing Bank of America customers, with its preferred rewards program offering discounts on initiating fees or interest rates. These privileges can greatly reduce a person’s mortgage.
Key Products
- Affordable loan solution mortgage scheme requires only 3% down payment
- Providing eligible applicants with a home purchase assistance of up to $17,500
- Existing customers receive special privileges and discounts
3. Sofi
Sofi stands out by offering a one-stop shop for potential homeowners.
In addition to mortgage loans, the company has established partnerships with the real estate broker platform and provides a quick tool for homeowners’ insurance quote comparisons. This non-bank lender is known for its competition, user-friendly digital platform and customizable loan terms, which makes new homebuyers easy to get the financial situation they need.
Key Products
- Falling payments may be as low as 3% to 5%
- $10,000 on time closure guarantee If the closure exceeds the contract date, the lender is at fault
- Simple full-line application
4. Alliant Credit Union
Similar to PSECU, Alliant Credit Union is a member-owned, non-profit financial institution that allows it to offer favorable loan terms and minimum fees. First-time home buyers may particularly benefit from their low payment methods.
You can see a wide range of custom mortgage rates without providing any personal information. Borrowers also don’t need to be a credit union member before closing, allowing you to think thoroughly about your choices.
Key Products
- Sample rate can be obtained in advance for greater transparency
- No application fee, so low that no down payment is required
- Good choice for loan types with flexible terms
5. Rockets mortgage
Rocket Mortgage is one of the most popular mortgage lenders in the United States, mainly due to its affordability and other favorable terms. Its excellent offer is one of its + loans where qualified borrowers can contribute 1% of the down payment, while Rocket contributes 2% of the total cost of the home, with a total cost of 3%.
Getting a Rockets mortgage is also very easy. You can use powerful mobile apps to carefully study the entire application and approval process.
Key Products
- Falling payments may be as low as 1% of the home’s value
- Execution cost assistance for former renters
- Easy application process through mobile app
Tips for eligible for an affordable mortgage
Depending on your current financial situation, it is possible to qualify for an affordable mortgage to do some work. These tips can help you get the perfect terms for your first home.
Check your credit score
Your credit score is an important factor in determining the mortgage you are eligible for and the terms you are awarded. Higher credit scores usually have lower interest rates and more favorable terms.
Most regular lenders score at least 620.
Check your credit report and raise potential errors. If you need to increase your score, pay back any outstanding debts and make sure you pay on time.
View your debt-to-income ratio
The lender looks at your debt-income (DTI) ratio to assess whether you can afford monthly payments. Lower DTI signals reduce risks and increase your chances of approval and better conditions.
To calculate your DTI, add monthly debt payments and divide it by your monthly income. Reducing the DTI ratio usually requires repaying debts or increasing income.
Save down payment
You don’t have to pay a 20% down payment. Many lenders offer lower interest rates, usually ranging from 3% to 5%. However, larger initial payments usually mean lower monthly payments.
Start saving for your home early. High yield savings accounts can help you achieve your goals faster. If possible, explore your state or city payment assistance program.
Consider multiple lenders
Approval standards, rates and fees between lenders can be large. Take the time to compare your options and find the most affordable mortgage options for first-time home buyers and favorable loans. Consider completion costs, customer service quality and special offers to further enhance your terms.
How to choose the best lender
The right mortgage lender depends on your financial situation and long-term goals. Consider these factors when comparing lenders.
interest rate
The difference in interest rates can increase by thousands of dollars throughout your loan period. Compare lenders side by side to see which provides the best interest rate for your credit score and loan type. Some lenders have useful interactive tools to calculate rate estimates without the need for an application.
Customer Service
Mortgage terms often span decades (30 years!), so it’s important to work with lenders that can make home purchase experiences less stress. You may want to read online forums or view the website to see previous borrowers’ experiences, or ask your friend or real estate agent to recommend an affordable mortgage option. You can also test their responsiveness by calling or emailing an application-related question.
Special offer
Some lenders offer special offers or privileges to first-time home buyers, such as down payment assistance or educational resources. These programs can really reduce your upfront costs, making your purchases more accessible.
Your first home is waiting
Home Owning Scope in 2025, especially providing affordable mortgage options for first-time home buyers. Many lenders’ down payment options are even financial aid programs – creative solutions to help you get your place sooner rather than later.
