Overview
Most first-time buyers worry about three things: down payment, credit, and the process. The good news is there are now more first-time-buyer programs than at any point in U.S. history. FHA loans accept 580 credit with 3.5% down. Conventional HomeReady and Home Possible accept 3% down for income-eligible buyers. VA loans require 0% down for eligible veterans. USDA loans require 0% down in eligible areas.
Down-payment assistance is widely available too. Nearly every state has a Housing Finance Agency with grants or low-interest second mortgages stackable with FHA, VA, or conventional financing. Many state programs are specifically for first-time buyers, defined loosely as anyone who hasn't owned a primary residence in the last 3 years.
The process is more straightforward than it looks. Get pre-approved before house hunting (lenders want 2 years of W-2s or tax returns plus 2 months of bank statements). Make offers with a pre-approval letter. Once accepted, underwriting takes 30-45 days. Your loan officer guides you through every step. Most first-time buyers close 60 days after their first call with us.
Recommended loan programs
Frequently asked questions
How much do I need for a down payment?+
Minimum down payment depends on the loan program: 0% for VA and USDA, 3% for some conventional first-time buyer programs, 3.5% for FHA, and 5% for most other conventional loans. Many state housing finance agencies provide down-payment assistance that can reduce or eliminate your out-of-pocket cash needed.
What credit score do I need?+
FHA accepts 580 (3.5% down) or 500 (10% down). Conventional usually requires 620, with the best pricing at 740+. USDA typically wants 640. VA has no VA-set minimum but lenders usually require 580-620. If your credit is below 580, focus on paying down credit card balances and removing collections before applying.
How long does the process take?+
From first call to closing day, expect about 45-60 days. Pre-approval can happen in 1-2 days if you have your documents ready (W-2s, pay stubs, bank statements). House hunting takes as long as it takes — your pre-approval is typically good for 60-90 days. Underwriting after offer acceptance is 30-45 days.
Do I need a real estate agent?+
Yes — and the seller typically pays the buyer's agent commission, so the agent is effectively free for you. A good buyer's agent will help you negotiate, navigate inspections, and manage the timeline. Make sure your agent is local and has experience with the price range and neighborhoods you're targeting.