BONUS Week 1: Understanding PMI, Loan Types & What It Means for Your Budget
Buying your first home is exciting—but navigating the loan process can feel like learning a new language. Here's what first-time buyers need to know to budget confidently and avoid surprises.
Common Loan Types:
- Conventional: Minimum 3% down, but 20% avoids PMI (Private Mortgage Insurance).
- FHA: Backed by the government, requires 3.5% down, easier credit requirements.
- VA/USDA: 0% down if eligible (military or rural areas), no PMI in many cases.
What is PMI? Private Mortgage Insurance is usually required if you put down less than 20%. It protects the lender—not you—and adds $100–$300/month to your payment.
Understanding these options can help you choose the right loan and plan your down payment more strategically. Want to explore grants or assistance options? Check out: First-Time Home Buyer Programs by State.
Pro Tip: At Seeking Agents®, some agents include lender referrals and mortgage prep support when competing for your business—making your journey even smoother.
Next Week: Your Credit Score & Pre-Approval Power — What Lenders Look For
*Savings are not guaranteed and depend on market conditions and agent negotiations.
This article is for informational purposes only and does not constitute financial advice.
Always consult with a licensed real estate professional before making any real estate decisions.