After so many years of effort and saving to gain the financial stability needed to apply for a mortgage loan, you may want to stop a bit and calm your emotion to give yourself the time to review the best options for you. In the United States, there are government-backed programs or loans specially dedicated to first-time buyers. To help you make a more informed decision, the mortgage experts from ClearPath Lending have rounded up some of the best national loans for first-time homebuyers that can help get you into your first home without needing to make a 20 percent down payment.

As more families prepare to take that next step towards financial stability, ClearPath Lending, a nationwide mortgage lender, is ready to meet that demand with sophisticated tools, better processes, and innovative products. Although the process is complex and the variables are many, ClearPath Lending always stays on track by focusing on what matters.

1. State First-Time Home Buyer Programs

State and local government programs offer assistance to first-time home buyers. These types of programs cannot be generalized since each city has its own requirements and supports, but some could help you with the down payment, with the costs of applying for the mortgage or other measures to make it easier for you to buy your first home.

2. FHA loan

Loan program for buyers with weaker credit

The Federal Housing Administration (FHA) program is one of the most popular in the United States, especially for Americans who are going to buy their home for the first time and for those who have a low credit history. In addition, depending on some requirements, they can qualify for a loan where they would only pay the 3.5% down payment.

3. USDA loan

100% financing in rural properties

The United States Department of Agriculture (USDA) has a home buyer assistance program and, as ClearPath Lending experts explain, you do not even have to live on a farm, although they do target eligible homes in rural areas, by allowing 100% financing and offering mortgage guarantees to lenders.

4. Fannie Mae and Freddie Mac

3% advance loans

Both Freddie Mac and Fannie Mae are government-approved companies that work with local mortgage lenders to offer a number of conventional loan offers, having an especially attractive offer with a 3% down payment. Buyers need a minimum credit score of around 620, good financial and credit history, among other requirements. Additionally, Fannie Mae accepts a debt-to-income ratio of up to 50% in some cases.

5. VA loan

Loans for members of the military

The United States Department of Veterans Affairs has this type of loan for active members of the military, veterans, and surviving spouses. Among the benefits they offer for their community is the possibility of not having to give a down payment or mortgage insurance, in addition to offering low interest rates.

While the myriad of financing options available for first-time home buyers can seem overwhelming, taking the time to research the basics of property financing can save you a significant amount of time and money.