Buying your first home (FHA vs conventional, the steps)

Who this is for

Nepalese families considering their first home purchase in the US.

FHA vs conventional (the short version)

• FHA loan — government-backed; built for buyers with a smaller down payment + a thinner/lower credit profile. Trade-off: mortgage insurance that can last the life of the loan. Great for getting in sooner.
• Conventional loan — often better long-term if you have stronger credit + a larger down payment; mortgage insurance can usually be dropped once you have enough equity.
• There's no universal "best" — it depends on your credit, savings, and how long you'll stay. A lender can run both for your numbers.

The steps

1. Check your credit + save — credit affects approval + rate; the down payment + closing costs are separate cash needs (closing costs come on top of the down payment).
2. Get pre-approved — a lender reviews income/credit and tells you a realistic budget; compare a few lenders (rates + fees differ). Pre-approval makes your offers credible.
3. Find a buyer's agent — they represent you (typically at no direct cost to the buyer) and guide offers + paperwork. (UnitedSewa's verified real-estate/mortgage businesses can be a starting point.)
4. Search + tour, then make an offer (your agent helps price it).
5. Inspection + appraisal — the inspection protects you (don't skip it); the appraisal confirms value for the lender.
6. Finalize the mortgage + close — sign, pay closing costs + down payment, get the keys.

Things first-time buyers get wrong

• Forgetting closing costs — budget them in addition to the down payment.
• Skipping the inspection to win a bid — risky; it can reveal expensive problems.
• Not shopping lenders — rates + fees vary; a small rate difference is a lot over 30 years.
• Stretching the budget — your pre-approval max isn't your comfort max; leave room for repairs + life.

Your rights (fair housing)

A seller, agent, or lender cannot discriminate against you based on national origin, religion, race, family status, etc. If you suspect it (in a sale or a mortgage), you can report it to HUD. First-time homebuyer assistance programs (down-payment help, etc.) exist in many states — ask your lender/agent.