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First Time Homebuyer Loan However, many other options exist for people-especially if they’re first-time homebuyers. An FHA loan, for example, only requires a 3.5% down payment, but you also have to pay for mortgage insurance to help offset the cost if your loan defaults.
Home equity loans are a type of second mortgage that let you use your home’s value as collateral to pull out cash. Home equity is the difference between how much a home is worth and any debts.
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