When purchasing a home, it’s essential to understand the various financing options available to you. Here are some common types of loans and programs:
- First-Time Homebuyer Programs: Many states, including Massachusetts, offer programs to assist first-time homebuyers with down payments, closing costs, and other expenses. Check with your lender for specific programs that you may qualify for.
- Conventional Loans: These are not insured or guaranteed by the federal government and typically require a higher credit score and down payment.
- FHA Loans: Insured by the Federal Housing Administration, FHA loans are popular among first-time buyers due to their lower down payment requirements and flexible credit standards.
- VA Loans: Available to veterans and active-duty military members, VA loans are guaranteed by the Department of Veterans Affairs and often require no down payment.
- USDA Loans: These are for rural homebuyers and are backed by the U.S. Department of Agriculture. They require no down payment and offer competitive interest rates.