First-time home buyers have a different set of challenges when it comes to buying a home. For one, they don’t have a home to sell. That means they don’t have the option of taking the proceeds from their home’s sale and using it to fund the down payment on a different house. In other words, they have to come up with a down payment mostly from savings. That can be challenging in a market where prices continue to rise. But while the market can be challenging for first-time buyers, that doesn’t mean they aren’t active. In fact, based on new data from the Mortgage Bankers Association, they may be getting ready to buy. Joel Kan, MBA’s vice president and deputy chief economist, says FHA loan application activity was up in March and that’s a sign first-time buyers are on the move. “The FHA share of applications did increase in March, exceeding 26 percent, compared to a 24 percent average for the prior 12 months,” Kan said. “A higher FHA share can be a sign of more first-time buyer activity, but that segment of buyers is also more sensitive to affordability challenges.” (source)