HOW IT WORKS

What First Time Buyers Need to Know

The homebuying process has a lot of moving parts. Understanding the basics before you start makes everything easier and helps you avoid surprises along the way.

Get Pre Approved First

Before you start shopping for a home, getting pre approved tells you exactly what you can afford and shows sellers you are a serious buyer ready to move forward.

Multiple Loan Options Available

First time buyers are not limited to one loan type. Depending on your credit, income, and savings, you may qualify for FHA, conventional, or VA financing, each with different requirements and benefits.

Multiple Term and Rate Options

Depending on your loan program, you may have choices on your loan term and rate structure. Understanding how these affect your monthly payment and long term cost helps you choose what works best for your situation.

Total Cost Goes Beyond the Purchase Price

Your monthly payment includes principal, interest, property taxes, homeowners insurance, and possibly mortgage insurance. Understanding the full picture helps you buy with confidence.

Basic Eligibility Requirements

First Time Buyer: Has not owned a primary residence in the past 3 years

Credit Score: Varies by loan program, 580 minimum for FHA

Down Payment: As low as 0% to 3.5% depending on loan program

Income: Stable and verifiable, requirements vary by loan type

Debt to Income: Within program guidelines

Property: Primary residence only for most first time buyer programs

Location: Texas, Florida, Minnesota, or Colorado

pros and cons

Is a First-Time Homebuyer Loan Right for You?

First-time homebuyer programs are designed to make getting into your first home more affordable and less overwhelming. Here's what to know.

The Advantages

Building equity over time instead of paying rent with no return.

Locking in a fixed payment provides stability that rent cannot offer.

Multiple low down payment options make it possible to buy sooner than many expect.

Owning builds long term equity that renting simply cannot provide.

Homeownership builds long term wealth and financial stability for most buyers.

You have the freedom to make the home your own without landlord restrictions.

The Tradeoffs

Upfront costs including down payment, closing costs, and prepaid expenses can add up quickly.

You are responsible for all maintenance and repairs once you own the home.

Less flexibility to relocate quickly compared to renting.

Budgeting for homeownership requires accounting for costs beyond just the mortgage payment.

Who It's Best For

First-Time Homebuyer Loans Work Best For...

These programs and loan options are designed for buyers stepping into homeownership for the first time and looking for the most accessible path to get there.

Long Term Planners

Buyers who are ready to put down roots, build equity over time, and want the stability of owning rather than continuing to rent.

Limited Savings Buyers

Buyers who have stable income and are ready to own but need low down payment options or assistance programs to make the upfront costs manageable.

Credit Builders

Borrowers who have been working to establish or improve their credit and want to take advantage of programs designed with more flexible qualification standards.

Common Questions

Frequently Asked Questions

Straight answers to the questions we hear most often.

What loan programs are available for first time buyers?

First time buyers have access to several options including FHA loans, conventional loans with low down payment programs, VA loans for eligible veterans, and down payment assistance programs depending on your state and county.

How much do I need for a down payment?

It depends on the loan program. FHA loans require as little as 3.5% down. Some conventional programs go as low as 3%. VA loans require no down payment for eligible borrowers.

What credit score do I need to buy a home?

It depends on the loan type. FHA loans can work with scores as low as 580. Conventional loans generally require 620 or higher. The stronger your score, the better your rate and options will be.

What is the difference between pre qualification and pre approval?

Pre qualification is a quick estimate based on basic information. Pre approval involves a full review of your credit, income, and assets and carries much more weight with sellers when you make an offer.

How do I know which loan program is right for me?

The best loan for you depends on your credit, savings, income, and goals. We walk you through your options and help you compare programs so you can make a confident, informed decision.

First-Time Homebuyer