If you’re a first-time homebuyer struggling to come up with enough to make a down payment on a home, you should be aware of the following:

FHA loans
FHA loans are loans are obtained through the Federal Housing Administration, a government arm that helps homebuyers by providing mortgage insurance to cover lenders and enable them to provide loans that require a smaller down payment. FHA loans require only around 3.5 percent down and this smaller amount makes it easier for first-time homebuyers to save enough for a home. To qualify for an FHA loan, you need a good credit history and sufficient income that your monthly housing costs won’t represent more than 29 percent of your gross monthly income. Here's a tool to help you determine if you may be eligible for an FHA loan.

Conventional loan products
Many lenders offer conventional loan products specifically geared to first-time homebuyers. Some of these products require only a low down payment instead of the traditional 20 percent down, which can be daunting for a first-time homebuyer. Another available option is a second trust or “piggyback loan.” This is a second loan that closes at the same time as your first mortgage. The idea is to combine this loan with your down payment in order to reach the 20 percent needed for a conventional mortgage.

Private mortgage insurance
As a first-time homebuyer, be sure that you’re aware of Private Mortgage Insurance (PMI). You may require this insurance if you’re applying for a low down payment mortgage to protect the lender in case you default on your loan. It is usually required on mortgages with a down payment of less than 20 percent and costs about one-half of one percent of the mortgage amount per year, or $500 for a $100,000 loan. The good news is that once you’ve paid down your mortgage to the point where you achieve 20 percent equity in your home, most lenders will allow you to cancel the insurance.

Check with lenders to see what kinds of first-time homebuyer programs they have to offer. They’ll find one that best suits your needs and brief you on the necessary qualifications. Owning a home can be easier than you think!