Buying your first home is tough. Not only must you prove you have a steady income and reliable credit, but you have to save for a down payment as well as for closing costs and other fees. Overall, first-time buyers can be expected to save up 5-6 percent up front. Not an easy task for somebody just getting started! Fortunately, the government and a number of creditors realize just how important it is that new buyers enter the market each year, and have developed special loans to help market newbies get off on the right foot.

The FHA (Federal Home Administration) Loan

For years, first-time buyers have turned to the FHA for help getting financed. FHA loan insurance allows borrowers to buy with a down payment of as little as 3 percent of property cost. The loan amount is limited, so as to encourage purchase of moderately-priced starter homes, and borrowers who haven't owned a home for the past three years receive a quarter-percentage-point discount on the premium.

Fannie Mac and Fannie Mae

According to Keys to Mortgage Financing and Refinancing, by Jack Friedman, Ph. D., CPA, and Jack C. Harris, Ph. D., Fannie Mac and Fannie Mae offer programs intended to help first-time buyers. These loans are not restricted to first-time home buyers, but do contain features that are especially useful to such buyers. 'Affordable Gold' and 'Fannie 97' loans include low down payments with provisions for help from relatives, government, or nonprofit agencies. They require a pre-purchase educational session, but offer relaxed qualifying guidelines that recognize nontraditional sources of income and a history of rent paying to establish your credit.

Federal Home Loan Banks

According to Friedman and Harris, regional Federal Home Loan Banks are federally mandated to devote a certain portion of their funds to making affordable housing loans. To comply, banks award grants to lenders who device special lending programs tailored to the needs in their market areas. These programs may include lower payments, lower down payments, special interest rates, or relaxed qualifying guidelines.

For more mortgage information for first-time buyers, visit Bankrate, www.bankrate.com.