First home buyer loans are a great way to get into the property market and begin building your wealth. The best thing is that you don’t have to have a large deposit or be a high credit risk to qualify for one. You simply need to meet certain criteria, including having an income of $50,000 or less per year (plus any other debts), being under 40 years old and living within certain areas (more on this later).
There are three types of properties that can be purchased with a first home buyer loan.
- A single-family home, which is defined as a structure that has one or two units and is generally attached to another structure (for example, an apartment building). This type of property may or may not have an attached garage, but it does need to be in good condition and have no pending liens against it.
- A condominium unit, which is considered to be an individual living space within an entire building (like apartments). Condos require homeowners’ association fees and can only be purchased if you live in the same community where they’re located; otherwise you’ll need your own separate lease agreement from each condo association board member in order for them to approve your application for this kind of loan.
- Land—any piece of land large enough for development purposes (such as construction sites), though most lenders do not offer loans on vacant land because there’s no way of reusing these properties after construction has been completed on them
Are there any restrictions?
- You must be living in the property.
- Your credit history, income and employment are all important factors to consider when applying for a first home buyer loan.
As you can see, there are a lot of options when it comes to purchasing property with a first home buyer loan. The type of property depends on the amount available for your loan and whether or not you intend to use it as your primary residence.