First-time Homebuyer Guide
Your First Home Starts Here
Make Your Move with First-Time Homebuyer Programs
If you’ve been waiting for the right time to buy a home, this could be it. With loan options designed specifically for first-time homebuyers, owning a home is more accessible than ever.
Take advantage of:
- 3% down payment options
- Loan programs for credit scores starting at 620
- Fast closings—typically in 20 days
- 100% gift fund options for down payments
- Down Payment Assistance (DPA) programs
For those who qualify, HomeReady® First offers even more benefits, including:
- Up to $4,500 toward your down payment and closing costs
- Up to $500 for a 1-year home warranty
- Up to $500 toward appraisal costs
Buying with less money down means more room in your budget for the things that make a house feel like home—like paint, upgrades, and furniture.
Ready to take the next step? Contact us today to explore your options and start your homeownership journey!
Preparing for Your First Home Purchase
Buying a home is an exciting journey, but knowing what to expect can make the process even smoother. From understanding your first-time buyer status to getting pre-approved, being prepared helps you move forward with confidence.
What Does It Mean to Be a First-Time Homebuyer?
Even if you’ve owned a home before, you may still qualify for first-time buyer programs. In many cases, if you haven’t owned a home in the last three years, you’re considered a first-time buyer again—making you eligible for benefits like low down payments, grants, and down payment assistance programs.
Find a Loan
Mortgage Options
First Time Home Buyer Programs
FHA Loans
For: Buyers with modest credit scores or limited down payments.
Backed by the Federal Housing Administration, FHA loans are a popular choice for their lenient credit requirements and low down payment options, starting at just 3.5%. Ideal for those looking for a forgiving entry point into homeownership.
VA Loans
For: Veterans, active military members, and select military spouses.
Offered by the U.S. Department of Veterans Affairs, VA loans boast significant benefits such as no required down payment, no PMI, and competitive interest rates. A way to honor those who’ve served by easing their path to homeownership.
USDA Loans
For: Buyers interested in rural or suburban areas.
USDA loans are facilitated by the U.S. Department of Agriculture and aim to encourage rural development. They offer 0% down payment options for homes in eligible areas, making them an excellent choice for buyers seeking tranquility outside urban centers.
Conventional Loans
For: Buyers with stronger credit histories.
Conventional loans are not insured by the government but adhere to the guidelines set by Fannie Mae and Freddie Mac. They offer versatility with down payments as low as 3% and are a solid choice for buyers with a stronger credit profile.
Grants and Assistance Programs
Buying your first home doesn’t have to mean saving for years. Down Payment Assistance (DPA) programs help qualified buyers cover upfront costs like down payments and closing expenses, making homeownership more accessible. Some programs offer grants that don’t need to be repaid, while others provide forgivable or low-interest loans to help reduce financial barriers.
Many state and local programs offer assistance based on factors like income, location, and first-time buyer status. If you’re unsure where to start, we’re here to help you navigate your options and find the best program for your needs.
Why Wait? Become a Homeowner with as Little as 3% Down
Ready to take the first step towards homeownership? Fill out the form below to get personalized guidance and discover the best mortgage options for you.
First-Time Homebuyer FAQs
Buying your first home comes with a lot of questions, and we’re here to help. Have more questions? Contact us today and let’s get you one step closer to homeownership!
A first-time homebuyer is someone who has not owned a primary residence in the last three years. This includes individuals who have never owned a home as well as those who have owned a home in the past but not within the specified period.
Buying a home for the first time involves several steps:
- Assessing your financial situation to determine what you can afford.
- Getting pre-approved for a mortgage to understand your budget.
- Finding a real estate agent who understands your needs.
- Searching for homes within your price range.
- Making an offer on a home and negotiating terms.
- Completing a home inspection and securing a mortgage.
- Closing on the home and taking ownership.
You don’t need 20% down to buy a home! With programs like Conventional 3% down loans, FHA loans, and Down Payment Assistance (DPA) options, you can purchase a home with far less upfront cash than you might think.
DPA programs help eligible buyers cover their down payment and closing costs through grants, forgivable loans, or low-interest second loans. These programs vary by location and eligibility, but they can make homeownership much more affordable.
To get pre-approved for a mortgage:
- Gather financial documents, including recent pay stubs, tax returns, and bank statements.
- Choose a reputable lender or mortgage broker.
- Submit a mortgage application along with your financial documents.
- Wait for the lender to review your financial background and credit history.
- Receive a pre-approval letter that outlines how much you can borrow.
To qualify for first-time home buyer grants:
- Meet income requirements, which vary by grant and location.
- Complete a homebuyer education course, if required.
- Apply for grants through your state or local housing authority, nonprofit organizations, or financial institutions.
- Ensure the property you intend to buy qualifies under the terms of the grant program.
- Maintain the home as your primary residence for the duration required by the grant.
You are considered a first-time homebuyer again if you have not owned a home in your name within the past three years. This reset allows previous homeowners to take advantage of programs and incentives typically available to first-time buyers.
