Thus, first time buyer loans are different, since the borrower may not have collateral, such as a home to put on the burner, which is why the lender will consider

Thus, first time buyer loans are loans offered against potential equity. The house for purchase is the collateral against the loan. The lender will often repossess the home if the buyer fails to make payments. Therefore, before agreeing to any contract involving large sums of cash, borrowers are wise to read all details involved in the transition. Few other loans are available for first time buyers. Fanny Mae and many other programs are available that help first time buyers without equity or collateral to buy homes. Many of the homes sold by the Fanny Mae Organzation are low cost homes, since they were equity homes that buyers could not payoff.