First Time Home Buyer Programs

Special programs and assistance for first-time homebuyers

Minimum Credit Score

580 for FHA options, 620 for Conventional options

Down Payment

0% to 3.5%

Typical Timeline

30 to 45 Days

Overview

First-time homebuyer programs are designed to make the dream of homeownership more accessible for those purchasing their first home. These programs often combine lower down payment requirements, reduced interest rates, down payment assistance, and educational resources to help new buyers navigate the home buying process.

Whether through FHA loans, conventional 97% LTV programs, state and local assistance programs, or special grants, first-time buyers have numerous options to reduce upfront costs and qualify for favorable loan terms. Many programs also provide homebuyer education courses to ensure buyers are prepared for the responsibilities of homeownership.

Key Benefits

Down payment as low as 3% or less
Down payment assistance programs available
Reduced mortgage insurance options
Homebuyer education and counseling
Potential tax credits and deductions
Flexible credit requirements
Gift funds accepted for down payment
Seller concessions allowed

Who Qualifies?

Anyone who has not owned a principal residence in the last 3 years
Single parents who only owned previously with a former spouse
Displaced homemakers

Requirements

Must be first-time buyer (or not owned home in 3 years)
Credit score typically 580-620 or higher
Completion of homebuyer education course (some programs)
Income limits may apply (varies by program)
Property must be primary residence
Debt-to-income ratio requirements vary by program
Meet specific program eligibility criteria

Pros & Cons

Advantages

Allows you to buy a home without draining your savings
Access to down payment assistance (DPA) and local grants
Lower mortgage insurance rates on certain conventional first-time buyer programs (like HomeReady or HomePossible)

Drawbacks

Some down payment assistance programs result in a slightly higher interest rate
May require you to complete an online homebuyer education course
Often strict income caps apply to qualify for the best grants

What to Expect

Education: You may need to take a quick, HUD-approved online course about budgeting and homeownership.

Grant Approval: If using a local grant, we will coordinate the paperwork to ensure the funds are wired to title for your closing.

Closing: You bring far less cash to the table than a traditional buyer.

Compare Loan Options

vs. Repeat Buyer Programs

Repeat buyers usually have to put down a minimum of 5% on conventional loans and get worse pricing on mortgage insurance.

Frequently Asked Questions

What happens if I sell the house later?

Some grants require you to live in the home for 3-5 years. If you sell before then, you may have to repay a prorated portion of the assistance.

I owned a home 5 years ago, do I qualify?

Yes! The industry defines a "first-time buyer" as anyone who hasn't had ownership interest in a primary residence for the last 3 years.

Ideal For

First-time homebuyers
Those with limited savings for down payment
Buyers seeking educational resources
Those who qualify for assistance programs
Anyone purchasing their first home

Related Calculators

Use these calculators to estimate your payments and explore your options:

Affordability Calculator

Purchase Calculator

Next Steps

Ready to move forward with a First Time Home Buyer Programs? Here's how to get started:

Schedule a consultation to discuss your specific situation and goals
Get pre-approved to understand your buying power and strengthen your offer
Find your home with confidence knowing your financing is secured
Close on your loan with expert guidance every step of the way

Ready to Explore This Loan Option?

Schedule a Call