FHA and VA loans are typically the best for first time home buyers. If eligible, VA borrowers can buy a home with no down payment and no mortgage insurance, although there is a VA Funding Fee that is charged by the Veteran’s Administration.
FHA mortgages can be had with as little as 3.5% down and monthly mortgage insurance. The credit requirements are less stringent than for conventional mortgages thus many first time buyers use FHA loans to purchase their first homes.
If your credit is very good and/or you have funds available for a down payment, you may also qualify for a 3% or 5% down conventional mortgage. This will also require mortgage insurance but the cost and interest rates are typically lower than for FHA. If you have at least 20% down available, you can use conventional financing with no mortgage insurance required, thus saving you substantial money.
The best thing to do is to speak with a mortgage professional (a mortgage broker (not banker) is a good place to start) to see which loans you qualify for and start the application process. Your mortgage professional will be able to suggest which loans are most advantageous for your particular situation.