First-time homebuyers have several loan options: FHA loans require a 3.5% down payment and lower credit scores but include mortgage insurance; VA loans offer no down payment and no mortgage insurance but have a funding fee; USDA loans provide zero-down mortgages for rural areas with income limits; conventional loans need higher credit scores and down payments but no insurance fees. State programs may offer down payment aid and tax credits. Home renovation loans include extra funds for repairs with a 3.5% down payment.