A first time home buyer loan

A first time home buyer loan is commonly referred to as an FHA or Federal Housing Administration loan that is sponsored by the Department of Housing and Urban Development. First time home buyer loans are government guaranteed loans. This financing is not granted directly from the Federal Housing Administration, but by traditional lending institutions such as banks or credit unions, and sometimes mortgage brokers. A Mortgage broker may participate in the FHA program by offering this financing to their clients through a variety of approved lenders.