Advantages of Owning

• An abundance of first-time home buyer's programs exist to make owning a home a reality for as many people as possible. The two biggest advantages enjoyed by home owners are tax deductions for mortgage interest payments and property taxes, and the freedom to do what you want with your humble abode. If you take the time to research, talk with a real estate agent and choose a house in an area where home values are likely to rise, owning your own home can be like having a savings account, providing you with possibly your single biggest asset.
  
  

First-time Home Buyer's Programs

• One of the major obstacles to overcome is coming up with the down payment for a home. The majority of first time home buyer's programs work by offering a variety of benefits, like lower interest rates, a low or no down payment, restrictions on lenders' fees, subsidizing interest or money grants. Be aware, that many first-time home buyer loans place a cap on the purchase price of the home you are buying, which may limit your choice of neighborhoods, areas and more expensive homes.
  
  

Zero- to 5-percent Down Programs

• The Fannie Mae HomePath 30-year fixed mortgage requires only a 5 percent down payment and a minimum credit score of 660. My Community Plus First Time Home Buyer Program requires only a 3 percent down payment and a minimum credit score of 680 for a 30-year fixed-rate loan with rate buy-down options available. There is an income limit unless you purchase a home in a "targeted area," and if you are a fireman, teacher, police officer, military personnel, nurse or other health care worker or pharmacist, you receive a $500 credit toward your closing costs. A few other zero- to 5-percent down programs include: the USDA 100 percent Financing Program, First Home Buyers Down Payment Assistance Program and Fannie Flex 95 percent Financing Program.
  
  

Government Loans/Grants

• FHA, Federal Housing Administration, loans are a popular choice with first-time home buyers. You only need a minimum credit score of 620, a 3.5 percent down payment -- and the funds can be 100 percent gifted from a family member, charity or grant program. Loan limits do apply and vary by county. If you buy a HUD, Department of Housing and Urban Development, home, it offers a low-down payment incentive, that means you only pay a down payment of $100. It must be a HUD-owned property and you will need to have a minimum credit score of 620. Other government loans include the FHA's 203k Streamline Loan, VA loans, veterans or active military personnel, and an FHA 2-1 Buydown. Grants.gov provides information about all government grants that may be available to first-time home buyers, or check with HUD's Homes and Communities program.