First-Time Buyer Hub

Think You Don't Qualify as a First-Time Buyer?

You might be surprised. The definition is broader than most people think. Take our quick quiz to find out if you qualify for special first-time buyer programs, grants, and lower down payments. And when you're ready to budget, learn what realtor fees actually cost so there are no surprises.

Happy first-time homebuyers with keys to their new home

Down payments from

3% - 3.5%

Do You Qualify? Let's Find Out!

Answer a few quick yes/no questions. According to HUD guidelines , you may qualify even if you've owned property before.

Who Qualifies as a First-Time Buyer?

According to HUD (U.S. Department of Housing and Urban Development) , a first-time home buyer is someone who:

Has never owned a home before — the traditional definition
Has not owned a principal residence in the past 3 years — you could have owned rental property!
Single parent who previously owned only with a former spouse
Displaced homemaker who only owned property with a spouse
Only owned non-compliant property that couldn't meet building codes

Example: You could own a rental property continuously for 6 years, but if you haven't lived in a home you owned for the past 3 years, you still qualify as a first-time buyer!

Once the three-year rule confirms you qualify, the next question is which mortgage fits — it helps to compare the loan options available to first-time buyers side by side. And before you start saving, get an honest picture of what you'll actually need with our down payment reality check. If your credit history is a concern, our guide on how to buy a house with bad credit walks through which programs accept lower scores and how to strengthen the rest of your application.

Your First-Time Buyer Success Checklist

Follow these steps to make your home buying journey smooth and successful. If you're not quite ready to buy, learn about rent-to-own as a path to buying. Check out our detailed process guide for more information, plus what to expect when your offer goes under contract and how to avoid the open-house dual-agency trap.

Step 1

Have a Question? Ask Emmett

Not sure where to start? Get plain-English answers about credit, down payment, programs, and more — no forms, no commitment.

Ask Emmett now

Step 2

Check Your Credit Score

Review your credit report for errors. FHA loans accept scores as low as 580 with 3.5% down.

Learn about credit requirements

Step 3

Calculate Your Budget

Use our affordability calculator to see what you can comfortably afford.

Try our calculators

Step 4

Gather Documents

Collect pay stubs, W-2s, tax returns, and bank statements from the past 2 years.

Download document checklist

Step 5

Get Pre-Approved

A pre-approval letter shows sellers you're serious and speeds up your home search.

Start your pre-approval

Step 6

Explore Down Payment Assistance

Many state and local programs offer grants or low-interest loans for first-time buyers.

Read our DPA guide

Step 7

Understand the Timeline

From pre-approval to closing typically takes 30-45 days. Plan accordingly!

See the full process

Feeling overwhelmed? Skip the reading and just ask. Ask Emmett →

Best Loan Programs for First-Time Buyers

Explore these popular options. Visit CFPB's homeownership resources for unbiased guidance.

FHA Loans

3.5% Down

• Credit scores from 580
• Gift funds allowed for down payment
• Flexible debt-to-income ratios

Learn about FHA

Conventional 97

3% Down

• Lower mortgage insurance than FHA
• PMI can be removed at 20% equity
• Competitive interest rates

Learn about Conventional

VA Loans

0% Down

• For veterans & active military
• No private mortgage insurance
• Competitive rates

Learn about VA

See all first-time buyer loan options

Full breakdown including HomeReady, Home Possible, USDA, and how to choose.

First-Time Buyer FAQs

How much do I need for a down payment as a first-time buyer?

Less than most people think. FHA loans start at 3.5% down, Conventional 97 at 3%, and VA and USDA loans allow 0% down for eligible buyers. Down payment assistance can lower that even further.

What credit score do I need to buy my first home?

FHA loans accept scores as low as 580 with 3.5% down (and 500-579 with 10% down). Conventional loans typically want 620+. A higher score means a better rate, but you have options across the range.

Which loan program is best for first-time buyers?

It depends on your credit, savings, and goals. FHA is flexible on credit, Conventional 97 keeps mortgage insurance lower, and VA/USDA can mean zero down. See the full comparison in our first-time buyer loan guide, or ask Emmett for a personalized recommendation.

Read the complete first-time buyer loan guide

First-time buyer guides

Guides & articles for first-time buyers

2 min read·Home Buying

Pre-Qualification vs Pre-Approval: What's the Difference?

Pre-qualification is a quick, informal estimate based on information you report yourself. Pre-approval is a verified decision based on the lender pulling your credit and reviewing your actual documents. Sellers take pre-approval far more seriously, and it's the one that matters when you're ready to make an offer.

3 min read·Home Buying

Gift Funds: The Rules for Down Payment Gifts

A family member can give you money for your down payment, and on most loan types the entire down payment can be a gift. The key rules: it has to be a true gift with no repayment expected, it must come from an acceptable source, and it has to be documented with a gift letter and a clear paper trail.

2 min read·Mortgage Basics

What Credit Score Do You Need for Each Loan Type?

The minimum credit score depends entirely on the loan program: FHA goes as low as 500-580, VA and USDA have no federal minimum (lenders typically want 580-640), conventional generally starts around 620, and jumbo loans want 700 or higher. Here's the breakdown by program.

3 min read·Home Buying

How to Buy a House With Bad Credit

You can buy a house with bad credit, it just takes the right loan program and some strategy. FHA loans accept scores as low as 500, and there are concrete steps to strengthen your application even when your credit isn't where you'd like it.

2 min read·Home Buying

How Can You Buy a House With No Money Down?

Two true zero-down loans exist: VA for veterans and military, and USDA for eligible rural and suburban homes. A few other paths get you close.

2 min read·Home Buying

Down Payment Reality Check: How Much You Actually Need

You don't need 20% down to buy a house.

Ready to Start Your Homeownership Journey?

Get personalized guidance from Emmett Clark, a mortgage professional with 20+ years of experience helping first-time buyers.

Get Your Free Quote Or just ask me a question

Licensed in 18 states • NMLS #233747 • (866) 617-7381

Expert Reviewed

Emmett Clark

Licensed Mortgage Loan Officer · NMLS #233747 · 20+ Years Experience