First Time Homebuyers Loan Options

The first time homebuyer loan options for 2010 start out looking more attractive by the day.

After watching mortgage rates move higher day after day in December, they’re starting to turn around.  Rates hit all-time mortgage lows six times last year, finally setting their best mark right after Thanksgiving.  So, while rates had increased nearly .625%, they had only moved up to around 5.25%.

To start 2010, the loan options are beginning to look more attractive.  Here’s the cheat sheet what programs to look for:

• Less than 3.5% down–Check the state-by-state of loans for first time home buyers.
• 3.5-5% down–FHA is likely the best option
• 5% down–
  • 740 FICO:  Likely going to lean towards Conventional on a single-family home
  • 620-679 FICO:  Likely going to lean towards an FHA loan on a single-family home
  • 680-739 FICO:  See the first time home buyer mortgage comparisons
  • Condo:  See comparisons tagged condo loans

Stay tuned, we’ll have a few new comparisons up next week.

Related posts

• Homebuyer Tax Credit Ends in 100 Days
• First Time Home Buyer Programs
• FHA vs Conventional at 680 FICO
• This Week’s Mortgage Rate Predictions
• Mortgage Rate Projections: Week of April 12, 2010