Contact local lenders and ask them about their available first-time home buyer loan programs. Lenders will be able to tell you if you qualify for special loan terms, what the terms of their first-time home buyer loan programs are (e.g., interest rate, loan fees, length of mortgage, etc.), and any other special requirements. For example, some lenders may require that their borrowers attend a first-time home buyer's class and obtain a certificate of attendance. In some areas of the country, nonprofit human service organizations offer homeownership courses, and these, too, are a good source of information about local lenders and their loan terms.
The U.S. Department of Housing and Urban Development (HUD) funds housing counseling agencies throughout the country. These organizations can give advice on buying a home. To contact the agency nearest you, call 1-800-569-4287 or visit the HUD Web site at www.hud.gov. Information about special home buyer programs may also be available from state housing authorities. Check the government listings in blue pages of the telephone book or search the Internet.
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