What Are First-Time Homebuyer Loan Requirements? 📝 A mortgage loan is a lump sum of money that you borrow from a financial institution to purchase a property. When you take out a mortgage loan, you agree to pay back the principal amount (the original amount borrowed), plus interest over an agreed-upon period. For many first-time homebuyers, the process of obtaining a mortgage loan can seem daunting. Fortunately, first-time homebuyers have a variety of alternatives when it comes to acquiring a home. These include Federal Housing Administration (FHA) loans and programs explicitly aimed at first-time home purchasers. Many first-time buyer loans require as little as a 3% down payment, opening up a world of possibilities for purchasers who have only encountered the usual 20% down payment. There are even some loan programs with 0% down and some that will pay your closing costs. That is why having a good agent with many resources is very important. An experienced San Diego real estate agent can assist you in finding a home that suits your needs and budget. If you're looking for Carlsbad homes near the beach, call me, Dennis Smith of San Diego Senior Real Estate, today, and I'll be happy to help you through the entire process.