which loan is the best for a first time home buyer?

[Christopher Verissimo]

Hey every one. I'm starting to look at properties mostly multi familys in the Boston area and I was wondering if FHA loans are the best for first time home buyers that don't have a ton of money save up? If any one could get back to me that would be awesome!

[Aaron Montague]

@Christopher Verissimo 

Welcome to BP!!

There are ups and downs to each type of loan. FHA is a low down payment, but a hefty PMI penalty. The FHA loan is also a tough sled with it's paperwork and requirements. You can shift though lots of info here on BP for most types of loans.

Here are the cheapest housing options I'm aware of in the US.  Please take a deep look at each one for details:

0% Down:
NACA (https://www.naca.com)
VA Loan (http://benefits.va.gov/HOMELOANS/index.asp)
Rural Development Loans (Renovations MAY be included)
(http://www.rurdev.usda.gov/HSF-About_Guaranteed_Loans.html)

3.5% Down
FHA (http://portal.hud.gov/hudportal/HUD/topics/buying_a_home)

3.5% AND Renovations
FHA 203k loan (http://portal.hud.gov/hudportal/HUD/program_offices/housing/sfh/203k)

5% Down
Homepath Owner Occupied (http://www.homepath.com)