First-Time Home Buyer Programs

Thinking About Buying Your First Home? Here’s What You Need to Know in 2025

If you’ve been renting for a while, you’ve probably dreamed about owning your own home. It sounds great — investing in an asset instead of paying rent, gaining the freedom to customize your space, and finally being in control of your living environment. Before long, you might find yourself browsing CapCenter’s home search tool, excited about the possibility of homeownership.

Good news: It’s easier and more affordable than ever to buy your first home.

Thanks to recent updates from Fannie Mae and Freddie Mac, first-time homebuyers can benefit from reduced fees and more flexible loan options. And when you choose CapCenter’s mortgage and realty services, you can also avoid many of the typical closing costs — saving you thousands.

Why Own a Home?

Owning a home is more than just having a place to live — it’s an investment in your future and a way to create a space that truly feels like yours. Here are some key benefits:

• Build Equity Over Time: Each mortgage payment builds your ownership stake in your home — equity that can be leveraged later for future financial needs.
• Potential Appreciation: While no one can guarantee market appreciation, historically, homes tend to increase in value over time, growing your wealth.
• Stable Housing Costs: Unlike rent, which can rise unpredictably, your fixed-rate mortgage payment stays steady, giving you financial stability.
• Freedom to Personalize: Paint, renovate, or remodel as you like — no landlord approvals required.
• Community Connection: Homeownership often strengthens your ties to your neighborhood and community.

What’s New with First-Time Homebuyer Programs in 2025?

Fannie Mae’s HomeReady and Freddie Mac’s Home Possible programs have enhanced benefits designed to ease the financial burden on first-time buyers:

• Elimination of Several Fees: These include waivers for credit score-related fees, condo and manufactured home fees, adjustable-rate mortgage fees, and fees related to higher debt-to-income ratios.
• Increased Income Limits: Borrowers can qualify if their household income is up to 100% of the Area Median Income (AMI) for most areas, and up to 120% of AMI in higher-cost regions.
• Flexible Credit Guidelines: First-time buyers can qualify with lower credit scores without incurring extra fees, opening doors to more applicants.
• Expanded Manufactured Home Financing: Now easier and more affordable to buy manufactured homes with conventional loans.

These programs continue to be an excellent way for first-time buyers to secure affordable financing with fewer upfront costs.

How Do You Qualify?

• First-time homebuyer status: You qualify if you haven’t owned a home in the past 3 years.
• Income: Qualification depends on your household income relative to the AMI in your area.
• Primary residence: The home must be your primary place of residence.
• Loan Limits: For most places, the conforming loan limit is still $726,200, and up to $1,089,399 in high-cost areas.

If you’re unsure whether you qualify, simply indicate “first-time homebuyer” on your CapCenter loan application — our team will help verify eligibility and find the best options for you.

Finding Your First Home

Now the fun begins! Here are a few factors to keep in mind as you start your search:

• Location: Consider your daily commute, schools, amenities, and neighborhood vibe.
• Home Type & Size: Do you want a townhouse, condo, or detached home? How much space do you really need?
• Condition: New builds versus older homes requiring updates — what fits your lifestyle and budget?
• Budget: Your CapCenter Loan Consultant can help you pinpoint exactly what you can afford.
• Trusted Guidance: Working with a REALTOR®—especially one from CapCenter’s experienced realty team—can streamline your journey and protect your interests.

How Much Home Can You Afford?

Budgeting is key. Here are some core considerations lenders use to determine affordability:

• Income: Generally, mortgage payments should not exceed 29% of your gross monthly income.
• Debt-to-Income Ratio: Lenders prefer to see your total debt (including mortgage) below about 36% of your income.
• Down Payment: The larger your down payment, the less you need to borrow, lowering your monthly payments.
• Interest Rates & Loan Term: Lower rates and longer terms can make monthly payments more manageable.

Use CapCenter’s online mortgage calculator or speak directly with a Loan Consultant to get a clear picture of your budget and options.

Tax Benefits of Homeownership

Owning a home can also help at tax time with benefits such as:

• Mortgage Interest Deduction: You may deduct mortgage interest paid, lowering taxable income.
• Property Tax Deduction: Property taxes paid might be deductible if you itemize.
• Energy-Efficient Home Credits: Making green improvements could earn you tax credits.

Tax laws can change, and eligibility varies, so it’s wise to consult a tax professional to understand what benefits you qualify for.

Ready to Take the Next Step?

Buying your first home is a big milestone — but with the right team and programs on your side, it’s a rewarding and achievable goal. CapCenter is here to guide you every step of the way with expert mortgage consultants and a trusted realty team ready to help you find and finance the perfect home.

Start your journey today with CapCenter’s home search and zero closing cost mortgage options — your first home is closer than you think!

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