Unlock the door to your first home: Explore your loan options today!
Buying your first home is a huge step, and finding the right loan is key to making it happen. At The CL Team at Luminate Bank, we specialize in helping first-time homebuyers navigate the process with ease. Below, we’ve broken down the most popular loan programs available to help you choose the best fit for your needs.
Who qualifies for first-time homebuyer loan programs?
Whether you qualify for a first-time homebuyer program or loan depends on the specific eligibility requirements established by the mortgage lender, agency, employer or other financial institution. According to the U.S. Department of Housing and Urban Development, a first-time homebuyer is someone who has not owned a principal residence in the previous 3 years, though others might fall under additional criteria.
In many cases, you’ll have to be within certain income limits to qualify for the loans and programs that provide assistance to moderate- to low-income borrowers.
Check your credit score, debt-to-income ratio (DTI) and other qualifying factors before applying for a specific first-time home buyer program, grant or mortgage. We at The CL Team at Luminate Bank are happy to assist with this as part of your loan application.
Types of First-Time Buyer Programs
Conventional Loans
A popular choice for buyers with good credit and some savings.
Minimum down payment as low as 3%.
Competitive interest rates with options for fixed or adjustable-rate terms.
No upfront mortgage insurance required (private mortgage insurance, or PMI, is only required if you put down less than 20% and is paid as part of the monthly payment).
Flexible repayment terms ranging from 10 to 30 years.
Ideal For: Buyers with a stable income, solid credit history, and the ability to save for a downpayment.
FHA Loans
Government-backed loans designed to make homeownership accessible.
Down payments as low as 3.5%, making it easier to buy without a large upfront investment.
More lenient credit score requirements—often accepted with scores as low as 580 (above a 620 is recommended to achieve best, overall terms).
Offers refinancing options later if you need to adjust your mortgage.
Mortgage insurance premiums (MIP) required, regardless of down payment size.
Ideal For: Buyers who need more flexible credit or down payment requirements.
USDA Loans
Affordable financing for homes in rural and suburban areas.
No down payment required, keeping upfront costs minimal.
Low fixed interest rates with 30-year terms for affordable monthly payments.
Designed for properties in eligible rural and suburban locations.
Income limits apply, ensuring this program benefits low- to moderate-income households. Click Here for details.
Location restrictions apply as well – property must be located in an eligible area. Click Here for details.
Ideal For: Buyers seeking affordable options in smaller towns or less populated areas.
VA Loans
Exclusive benefits for veterans, active-duty military, and their families.
No down payment required, making it easier to buy sooner.
No private mortgage insurance (PMI), saving you money every month.
Competitive interest rates and flexible credit requirements.
Limited closing costs to reduce your out-of-pocket expenses.
Ideal For: Service members, veterans, and eligible spouses ready to achieve homeownership.
SC State Housing Loans
Special programs designed for South Carolina residents.
Down payment assistance options, which can significantly reduce upfront costs.
Lower-than-average interest rates tailored to first-time buyers.
Multiple programs, including options for buyers with moderate or low income.
Additional incentives for teachers, first responders, and veterans.
Income limits apply, ensuring this program benefits low- to moderate-income households. Click Here for details.
Ideal For: South Carolinians who need financial assistance to make homeownership a reality.
Why work with The CL Team at Luminate Bank?
Choosing the right loan is just the first step—we’re here to guide you through every stage of the home buying process.
Expert Guidance: Navigating the different options as a first-time homebuyer can be overwhelming – we are experienced in all the loan’s options outlined above and can help you compare options and find the best fit.
Fast, Easy Pre-Approval: Get pre-approved quickly so you can start house hunting with confidence.
Personalized Solutions: Every buyer’s journey is unique—your loan should be, too.
Ready to get started?
Your dream of owning a home is closer than you think. Let us help you find the perfect loan to fit your budget and lifestyle.