Are first time buyer loans worth it?

[Mike]

My friend is planning to buy a home this year.

He has $30,000 for the down payment on a home in the range of $450,000-475,000. Now what i wish to ask you guys is I've heard of first time buyer loans. Are they really good?

And there are programs for down payment as well so if that's so he would.

He take $30,000 out of his pocket for the money down? Does he need to pay off the down payment assistance and in how many years? He's in his late 20's, this is the first time he's buying and believe he is a bit worried because of so many people I hear these days losing their homes just because they got the wrong loan and the lender gave them a high rate.

So I'm here to talk about his options if you guys can give me some advice that works. His scores are not that good middle score is 678, but he worked to be in order. He had collections earlier but that was 3 years ago, so I hope it doesn't affect him much. He is a middle class person willing to get a home of his own but all this subprime, foreclosure's and home price fall scares him for the future.

So pleas let us know if it's good for him to buy now or should he hold off getting a Home Loan at this stage?

Thank you.