What are the best-rated first time home buyer government programs?


About VA Home Loans

The Department of Veterans Affairs (VA) also offers a variety of home loan assistance programs for active and retired service members. However, unlike other first time home buyer programs, VA home loans are not offered directly by the department.

Rather, the VA backs home loans up to a certain amount for qualifying service members and their families. Additionally, VA purchase loans enable military members to buy their homes without a down payment or mortgage insurance.   

About USDA Loans

Furthermore, the U.S. Department of Agriculture (USDA) offers a unique program for residents who plan to purchase property in USDA-approved rural areas.

Moreover, this program requires applicants to meet certain income limits. Essentially, only low to extremely low-income applicants are provided USDA home loan assistance.  

About HomeReady HomePath

The HomeReady HomePath program is the fifth option for new home buyers. Like other programs, HomeReady enables residents to purchase a home with a low down payment and receive 3 percent toward closing costs for completing a home buyer education course.

The best first time home buyer programs depend on how well a specific program can meet the needs of the home buyer. As a result, there is no one program that is best for all prospective first-time home buyers. Moreover, different programs serve different types of applicants.

For example, the Department of Veterans Affairs assists home buyers who are current or former military members.

Because the VA focuses its efforts on service members, it will likely offer the best options for those specific residents and be able to address their barriers to entry.

Therefore, the best home loan program for veterans and those on active duty is likely one that is offered by the VA.

While other first time home buyer government programs, such as FHA or USDA home loans, may also be suitable for service members, they may not address their issues as well as the VA can. On the other hand, low-income homebuyers may not find that FHA loans accessible.

However, HUD may have better mortgage options and rates as the department focuses its efforts on assisting low-income residents find permanent housing solutions.