Buying your first home is the largest financial transaction most people ever make. The good news: first-time buyers have access to dozens of programs, grants, and loan types specifically designed to lower the barrier to entry. This guide walks you through every step — from checking your credit to closing day.
What You’ll Find in This Guide
Are You Ready to Buy?
Before applying for a mortgage, assess your financial readiness: do you have a stable income, a credit score above 620, and enough cash for a down payment plus 3–6 months of emergency reserves? Timing your purchase correctly can save you tens of thousands.
Home Buying Readiness
First-Time Buyer Programs
Federal, state, and local programs offer reduced rates, lower down payment requirements, and closing cost assistance exclusively for first-time buyers. Many programs define “first-time buyer” as anyone who hasn’t owned a home in the past three years — so you may still qualify even if you’ve owned before.
Buyer Programs & Roadmaps
Grants & Down Payment Assistance
Hundreds of down payment assistance (DPA) programs exist at the state, county, and city level. Some are outright grants that never need to be repaid; others are deferred loans that become due only when you sell or refinance. Most require income limits and a minimum credit score.
Grants & Down Payment Help
Low & No Down Payment Options
You don’t need 20% down to buy a home. FHA loans require as little as 3.5% down with a 580 credit score. Conventional loans go as low as 3% down. VA and USDA loans offer 0% down for qualifying borrowers. The tradeoff is mortgage insurance, which adds to your monthly payment.
Low Down Payment Mortgages
Pre-Approval & Qualification
Pre-approval is a lender’s conditional commitment to lend up to a specific amount. Sellers take pre-approved buyers more seriously, and it helps you understand your exact price range before you start shopping. Getting pre-approved takes 1–3 business days and requires income documentation, tax returns, and a credit check.
Pre-Approval & Qualification
Affordability & LTV Calculator
Enter your home price and down payment to instantly see your loan-to-value ratio, whether PMI applies, and your estimated loan amount.
🏦 Loan-to-Value (LTV) & Down Payment Calculator
Frequently Asked Questions
What credit score do I need to buy a home?
FHA loans accept scores as low as 500 (with 10% down) or 580 (with 3.5% down). Conventional loans typically require 620+. For the best interest rates, aim for 740 or higher. VA and USDA loans have no official minimum but most lenders want 620+.
How much do I need for a down payment?
You can buy with as little as 0% down (VA/USDA) or 3% down (conventional/FHA). However, putting less than 20% down typically requires mortgage insurance. A larger down payment lowers your monthly payment and total interest cost, but you should always keep 3–6 months of emergency savings after the purchase.
What are closing costs?
Closing costs typically run 2–5% of the loan amount and include lender fees, title insurance, appraisal, prepaid property taxes and homeowners insurance, and attorney fees (in some states). Some of these are negotiable. First-time buyer programs often include closing cost assistance.
What is the mortgage credit certificate (MCC)?
An MCC is a tax credit (not a deduction) equal to a percentage of the mortgage interest you pay each year, typically 20–30%. It’s issued by state and local housing agencies to first-time buyers who meet income and purchase price limits. Unlike a deduction that reduces taxable income, the MCC directly reduces your tax liability dollar-for-dollar.
