Looking at buying your first home in Brown Deer, Wisconsin? At least you might be wondering if there's anything out there to help you get started. Good news—of course, there is! Special programs can make becoming a homeowner in Wisconsin a lot more affordable, even if you are not sure you would even qualify as a first-time homebuyer.

Who the mortgage industry qualifies as a first-time homebuyer is a little different than what you are probably used to. For mortgage purposes, you are considered a first-time homebuyer if you have not owned a residential property in the past three years. There are several exceptions to this rule. If you once owned a piece of land that had no residential buildings on it, or a mobile home and you didn't own the land, you might still be considered a first-time homebuyer.

Though that definition of a first-time home buyer can be jarring, there are still benefits to being considered one. Some of the benefits include:

• Lower Down Payment: FHA loans and conventional HomeReady or Home Possible programs allow you to only put 3% down on your first home.
• Lower Mortgage Insurance: PMI (private mortgage insurance) will be lower the less you have to finance on your home.
• Competitive Interest Rates: Typically, first-time homebuyer programs offer lower-than-average interest rates, which will save you money over the lifetime of your loan.

Step 1: Get Real About Your Budget

Before we dive into mortgages, know what your comfortable monthly housing payment is. Use factors like income, debt, and desired down payment. This will be the first step that guides your loan options and begins to influence the type of home you can realistically afford here in Brown Deer.

Step 2: Review Loan Programs for First-Time Buyers

Brown Deer offers a variety of loan options specifically tailored for first-time homebuyers. A few of the most common are:

• FHA Loans: Typical loans from the Federal Housing Administration are more lenient on requirements for down payments and credit scores than most conventional loans.
• USDA Loans: This is offered by the United States Department of Agriculture and is open to first-time homebuyers within select rural areas. This loan does not require a down payment and can be a great chance to own a home around Brown Deer. Check with your lender to make sure the property for which you want to purchase is eligible.
• WHEDA Programs: The Wisconsin Housing and Economic Development Authority has a number of loan programs for first-time homebuyers. Some of these are the WHEDA Advantage FHA Loan and the WHEDA Advantage Conventional Loan. These programs might offer lower interest rates and also down payment assistance for eligible applicants.
• VA Loans for First-Time Homebuyers: VA loans offer a number of benefits, if you are eligible, including no down payment, competitive interest rates, and no PMI.

Step 3: Get Pre-Approved

Pre-approval will be one of your most critical steps when you seek to purchase a new home. A lender will inspect your financial circumstances and prepare a pre-approval letter stating how much you are qualified to borrow. This makes your offer stronger when bidding against others and shows how serious you are to potential Brown Deer real estate agents.

Step 4: Save Up For Your Down Payment

Your down payment could make a major difference in your loan. The more you pay upfront, the lower your loan amount will be. Some programs will allow for as little as 0% down, including USDA loans. A larger down payment might help you get a lower interest rate, and it can eliminate the need for private mortgage insurance.

Step 5: Close the Deal

Once you have found your dream home and your offer has been accepted, you are ready to close. At closing, you will be completing the loan paperwork, paying any closing costs, and officially taking ownership of your new home!