Buying your first home is one of the biggest financial decisions you’ll ever make — and it can feel overwhelming. Between loan types, down payments, credit requirements, and closing costs, there’s a lot to navigate. The good news is that first-time home buyers in Fayetteville, NC and across Southeastern North Carolina have more options than ever, and Bragg Mutual FCU is here to help you find the right fit.
What counts as a first-time home buyer?
The definition is broader than most people think. In many loan programs a first-time home buyer is anyone who hasn’t owned a primary residence in the past three years — so even if you’ve owned a home before you may still qualify for first-time buyer programs and benefits.
What loan options are available for first-time buyers?
Bragg Mutual FCU offers several mortgage options well-suited to first-time buyers:
FHA Loans Backed by the Federal Housing Administration, FHA loans are one of the most popular options for first-time buyers. They require as little as 3.5% down and have more flexible credit requirements than conventional loans — making them a great fit if you’re still building your credit history. Note that FHA loans require mortgage insurance, which adds to your monthly payment.
USDA Loans If you’re buying in a rural or suburban area of North Carolina, you may qualify for a USDA loan — which requires no down payment at all for eligible borrowers. Many communities surrounding Fayetteville qualify for USDA financing. Income limits apply.
VA Loans For eligible veterans, active-duty service members, and surviving spouses, VA loans offer some of the best terms available — no down payment, no private mortgage insurance, and competitive rates. Bragg Mutual FCU offers VA loans to eligible members.
Conventional Loans Conventional mortgages are available with as little as 3% down for qualifying first-time buyers. If your down payment is less than 20% you’ll typically need to pay private mortgage insurance (PMI) until you reach 20% equity in the home.
How much do I need for a down payment?
It depends on the loan type — but you may need less than you think:
- FHA loan — as little as 3.5% down
- USDA loan — no down payment required for eligible borrowers
- VA loan — no down payment required for eligible borrowers
- Conventional loan — as little as 3% down for qualifying first-time buyers
On a $200,000 home a 3.5% down payment is $7,000 — significantly less than the 20% ($40,000) many people assume they need.
What about closing costs?
Closing costs typically range from 2-5% of the loan amount and cover things like appraisal fees, title insurance, and lender fees. Some loan programs allow sellers to contribute toward closing costs, and certain assistance programs may also help. Ask the Bragg Mutual FCU team about your options when you apply.
Tips for first-time buyers in Fayetteville, NC
- Get pre-approved before you start shopping — it shows sellers you’re serious and gives you a clear budget to work with
- Check your credit before applying — knowing your score in advance gives you time to address any issues
- Don’t open new credit accounts before closing — new inquiries can affect your credit score during the mortgage process
- Factor in all costs — mortgage payment, property taxes, homeowners insurance, and maintenance all add up
- Ask about first-time buyer programs — state and local assistance programs may be available in addition to your mortgage
Ready to take the first step?
Bragg Mutual FCU serves first-time home buyers across Fayetteville, NC and Southeastern North Carolina with local in-house mortgage servicing, competitive rates, and a team that guides you through every step of the process.