Loans that help first-time buyers
- FHA: 3.5% down with a 580 credit score.
- Conventional first-time buyer programs: as little as 3% down.
- VA and USDA: no down payment for those who qualify.
Down payment assistance
State housing finance agencies and many cities offer grants or low-cost second loans for down payments and closing costs. Rules and funding differ by state and change often, so we check what's open when you apply.
The steps
- Get pre-qualified so you know your price range.
- Gather pay stubs, W-2s, bank statements and ID for a full pre-approval.
- Shop with your agent and make an offer.
- Lock your rate, complete the appraisal and underwriting.
- Sign and get your keys.
Questions
Who counts as a first-time buyer?
For most programs, anyone who hasn't owned a home in the past three years.
How much do I need for closing costs?
Closing costs are commonly 2% to 5% of the price. Sellers, assistance programs or lender credits can cover some of them.