There are FHA loans, however most condos (which most first time buyers would be buying) do not qualify for FHA financing or the building approval process is so uncertain, making a seller less likely to accept your offer.

The best first step would be to contact a lender to see what you qualify for and if a conventional loan is possible. If you don't know a lender or have a good recommendation, contact a realtor for a referral. A lender referred through the realtor you are working with will usually bend over backwards to make your experience more pleasant and less stressful. I can be reached at 310-883-8921 or Reid@LAHomesExpert.com.

Hi there Mary,
I would recommend you meet with a Realtor to discuss your options for home purchase. I normally will include a loan officer who can explain FHA financing as will as the conventional loan. FHA is a great way to go with only 3-5% down payment.
My contact information in below if I can be of further assistance.

Mary:

It is difficult to answer the first part of your question "what is the market like for first time home buyers" without more information. "The market" depends on your price range and the area you are shopping in. In real estate, markets are very neighborhood specific. For example, in the beach cities, if your are looking for single family homes under $600K, the market if very competitive. There are very few listings and lots of buyers. Then again, if you are looking in the $1.0 mil and above range, you have much less competition, since loans are harder to get in this range, and there is more inventory available (so lower demand and higher supply, translates to a better chance of getting what you want). If you could be more specific about the your preferred area, property type and size, and price range, it would be easier to answer this question.

Next, "are there still FHA loan?" Pretty much, there are only FHA loans, unless you have 20% or more as a down payment. The good news is, FHA still has "jumbo" loans up to $729,750 (check with your lender as this varies by county) which require only 3.5% down, and they are at very low/competitive rates right now.

Last, "what do experts recommend first time buyers do today?" My guess is that experts would say; Work with someone who specializes in helping first time homebuyers. And just as importantly, work with someone who makes you comfortable, answers your questions, helps you find a great lender, communicates effectively and knows the programs available for first time homebuyers. You will spend a lot of time with your Realtor between your first meeting and the time you close escrow, so make sure that you work with someone who makes the searching, evaluating and buying process joyful. You should have fun finding your first home. Don't settle for less. Let me know if I can be of any further assistance to you and Dare to Dream.

Shel-lee Davis. CDPE
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
http://shel-lee.listingbook.com