There are plenty of special loan programs out there for first-time buyers. We are going to talk about a few of them today.

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We’ve been getting some great questions from our viewers about mortgages lately, and we wanted to answer one of them today. This one comes from Ron who asks, “Which programs are out there for first-time home buyers?”

The first thing we should mention is that all of the loan programs we’ve previously talked about, including VA, USDA, FHA, and conventional loans can all be used by first-time buyers. However, there are some additional programs out there that you can combine with your loan if you’re a first-time buyer.

What we like to do with our first-time buyers is pair our USDA 100% financing loan with the MCC tax credit program, which is for first-time buyers as well as buyers who haven’t owned a home in three years or longer.

The MCC tax credit program provides those buyers with up to 50% of their mortgage interest paid on their tax return each year they live in and own the house as a primary residence. The value of this credit can be up to $2,000, which could equate to a few mortgage payments that will be covered just by agreeing to own a home.

“THIS PROGRAM HELPS SWING THE PENDULUM IN FAVOR OF FIRST-TIME BUYERS.”

One reason this tool is beneficial to our buyers is because, from an underwriting standpoint, it allows us to use the credit as income to offset your debt-to-income ratio. Salaries aren’t increasing at the same rate as home prices are, so a lot of our buyers are being priced out of the market. This program helps swing the pendulum in favor of first-time buyers.

I hope this answers your question, Ron. If you have any other questions, don’t hesitate to reach out to us via phone or email. We look forward to hearing from you soon.