If you are planning on buying your first house or other real estate, it is very likely that you will not be able to pay in cash for it. This is why, in most cases, first-time house buyers seek the help of traditional banks and other lenders. It is always difficult to make exact calculations for the amount of money you can apply for and qualify for. This is why you need to carefully and thoroughly research the alternatives and the offer. Remember, this may be one of the largest investments you will make in your lifetime, so making it affordable for you and your family is crucial.

In the USA, there are possibilities for applying for a governmental mortgage loan (from the Federal Housing Authority or the Veterans Administration. Of course there are the private conventional mortgages available as well.

It is crucial that you take the time, and spend the efforts, to weigh out the different possibilities.

You must keep in mind, that the Federal Housing Authority, for example, requires only 3.5% down payment for their loan. On the other hand, the Veteran Administration requires no down payment, but they have a requirement for the applicants to have served in the US military.

The conventional mortgage lenders require a minimum of 5% down payment when providing you a mortgage for your house. Many banks and conventional lenders will agree to a mortgage at a lower salary in the cases when the client is willing to pay a larger down payment. This is another option which you need to keep in mind as well.

Remember, that in some cases, banks which are willing to give a 97% mortgage loan (and a 3% down payment) will also require that you buy private mortgage insurance to guarantee the bank its money in case you walk away from the loan. This will add an additional 0.5-0.75% on the interest rate, which in the long run will make your mortgage even more expensive.

For people with low-income and a need of a mortgage, HUD annually distributes funds to the different municipalities. They offer download payment assistance programs, which include offering grants of 3-5,000$ grants. In some cases these grants are forgiven, if the person remains a resident of this house for a certain number of years. The conditions for applying for such a grant vary from state to state.

All lenders though (government and other) have certain promotions and special programs for lending if you are purchasing a primary home for yourself and your family.
Another factor worth keeping in mind, is that while the private conventional mortgage lenders will require you have a perfect credit history and score, the Federal Housing Authority is prone to some lenience and compromise in this direction.

The best starting point when considering buying a new home and applying for a mortgage is to find your local loan officer and discuss all possibilities and details. The loan officer will not only clarify any questions, but will also help you get pre-approved for a loan for your new home.