First-time homebuyers with good credit are in a very peculiar place right now because if they want to buy a home, most likely they make above the area median income. Since they make above the area median income, they don’t qualify for the conventional first-time homebuyer programs, which give you a lower rate and lower PMI than an FHA loan. So most loan officers will recommend them to go with an FHA loan. The problem with FHA loans, is there’s an upfront mortgage insurance payment and a permanent monthly mortgage insurance payment that does not go away until you refinance into a conventional loan which can costs thousands of dollars. To avoid this, Freddie Mac has a program that will allow this type of buyer to put 3% down on a conventional loan. So they can still put less money down, and avoid the hassle of going FHA. SUBSCRIBE & FOLLOW MY IG FOR MORE HOME BUYING AND MORTGAGE TIPS! IG: @whatsamortgage. #shorts #mortgage #mortgagetips #homebuying #realestate