See How Much You Can Afford
Calculate your purchasing power and qualifying loan amounts.
First-Time Home Buyer
Buy your first home with less money down
Step-by-step guidance, flexible financing, and down payment assistance options designed to make your first home purchase possible.
Who qualifies as a first-time home buyer?
You don’t necessarily have to be buying your very first home to qualify for many first-time home buyer assistance programs. You may also qualify if you haven’t owned a primary residence in the past three years, you’re a single parent that has only owned a home with a former spouse, or your only previous home was a manufactured home.
The Mortgage Process
What to expect when buying a home
Conventional Loans
Buy with lower down payments
- Down payments as low as 3%
- Can be paired with other assistance programs for a down payment as low as 1%
- A good option for a wide pool of buyers
- Competitive rates & flexible terms
FHA Loans
A more accessible path toward homeownership
- Allows for lower credit score than other options
- Down payments as low as 3.5%
- Can be paired with state assistance options
- Good for buyers with higher debt-to-income
Down Payment Assistance
Get thousands toward your down payment
- HomeFundIt™: Raise money online from friends and family and get up to $2,000 in matching grants from Bank CMG
- Community One: Get up to $6,000 and buy with just 1% down
- State Assistance: Each state has several options that can help lower the upfront costs and long-term rate of your mortgage
FAQ
Frequently Asked Questions
We’re here to help! Find answers to your everyday mortgage questions.
Buying your first home typically starts with getting preapproved for a mortgage, setting a budget, and exploring loan options. From there, you’ll work with a real estate agent, make an offer, complete inspections, and finalize your mortgage before closing.
Many first-time home buyers qualify for low down payment options. Depending on the loan program, buyers may be able to purchase a home with as little as 3% down or less, and some assistance programs may help cover upfront costs.
Credit score requirements vary by loan type. FHA Loans may allow lower credit scores (as low as 580), while Conventional Loans often require higher scores for the best rates and terms.
The best mortgage for a first-time buyer depends on income, credit, down payment savings, and long-term goals. Popular options include FHA Loans, Conventional Loans, and down payment assistance programs.
Yes. Many first-time buyers purchase homes while managing student loans. Lenders look at your overall debt-to-income ratio, income stability, and credit history when determining eligibility.
Your home affordability is based on factors like income, monthly debts, credit score, down payment, and current mortgage rates. Getting preapproved can give you a clearer picture or try out our purchasing power calculator.
Mortgage preapproval is a lender’s review of your finances to estimate how much you may qualify to borrow. A preapproval letter can strengthen your offer when buying a home.
Yes. Many first-time home buyers may qualify for down payment assistance programs, grants, or affordable loan options designed to help reduce upfront home buying costs.
Closing costs are the fees associated with finalizing your mortgage and home purchase. These costs may include lender fees, title fees, taxes, insurance, and prepaid expenses.
Buying a home can help you build equity over time, while renting may offer more flexibility. The right choice depends on your financial goals, timeline, and readiness for homeownership.
The home buying process can vary, but many buyers close on a home within 30 to 60 days after their offer is accepted.
Common mistakes include skipping preapproval, underestimating closing costs, making large purchases before closing, and not exploring available loan or assistance programs.
Resources
First-Time Home Buyer Guide
All you need to know as a first-time buyer.
How to Raise Money for Your Down Payment
Learn about the unique way first-time buyers are saving on upfront costs.