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There are many programs to make it easier to become a homeowner. If you're a first-time home buyer, 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 obtained through the Federal Housing Administration, a government arm that helps home buyers 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% down and this smaller amount makes it easier for first-time home buyers 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% of your gross monthly income

Conventional Loan Products

Many lenders offer conventional loan products specifically geared to first-time home buyers. 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 home buyer. 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 home buyer, 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% 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% equity in your home, most lenders will allow you to cancel the insurance.

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