First Time Home Buyer Loans
First time home buyer loans make homeownership possible with low down payments, flexible credit requirements, and special programs designed for new buyers.
Why Choose First Time Home Buyer Loans?
These programs offer advantages designed specifically for new buyers entering the housing market.
Low Down Payments
Down payments as low as 0-3.5% depending on the program you choose.
Flexible Credit
Many programs accept credit scores starting at 580, making homeownership more accessible.
Gift Funds Allowed
Use gift funds from family members for your down payment and closing costs.
Seller Concessions
Sellers can contribute toward your closing costs, reducing out-of-pocket expenses.
Multi-Unit Properties
Purchase 2-4 unit properties and live in one unit while renting the others.
Fast Approval
Streamlined processes get you pre-approved quickly so you can shop with confidence.
First Time Home Buyer Loans: Program Options
According to HUD.gov, several federal programs help new buyers achieve homeownership.
FHA financing is popular for low down payments and flexible credit requirements.
- Credit scores as low as 580
- Gift funds allowed
- 1-4 unit properties eligible
VA financing offers incredible benefits for veterans and military members.
- No down payment required
- No monthly PMI
- Competitive rates
Conventional financing offers low down payments with removable PMI.
- 620+ credit score
- PMI removed at 20% equity
- No upfront MI premium
USDA financing covers rural and suburban properties with zero down.
- No down payment
- Low mortgage insurance
- Income limits apply
First Time Home Buyer Loans: Requirements
Understanding the requirements helps you prepare for a successful home purchase. The Consumer Financial Protection Bureau recommends understanding your borrowing power before shopping.
Credit Score Requirements
Different programs have different credit requirements:
- FHA: 580 minimum (500-579 with 10% down)
- Conventional: 620 minimum for most programs
- VA: No official minimum (most lenders require 580+)
- USDA: 640 minimum for automated approval
Down Payment Assistance Programs
Many state and local programs offer down payment assistance for new buyers. According to Down Payment Resource, there are over 2,000 homebuyer assistance programs nationwide that can help with your purchase.
First Time Home Buyer Loans: Documentation Needed
To apply, gather these documents:
- Two years of tax returns and W-2s
- Recent pay stubs (30 days)
- Two months of bank statements
- Government-issued ID
- Proof of any gift funds
House-Hacking Strategy
Many new buyers use FHA or VA financing to purchase multi-unit properties. Live in one unit, rent the others, and let tenants help pay your mortgage while building equity. This is a powerful wealth-building strategy available through first time home buyer loans.
The Mortgage Process
According to Fannie Mae, the typical mortgage process takes 30-45 days from application to closing. Here's what to expect:
- Pre-Approval: Get pre-approved before house hunting to know your budget
- House Hunting: Work with an agent to find your ideal home
- Offer & Contract: Make an offer and sign the purchase agreement
- Processing: We process your application and order the appraisal
- Closing: Sign final documents and get your keys
First Time Home Buyer Loans FAQs
These are mortgage programs designed to help new buyers purchase a home with low down payments, flexible credit requirements, and special benefits. Popular options include FHA, VA, Conventional 97, and USDA programs.
Credit requirements vary by program. FHA accepts 580+, Conventional requires 620+, and VA has no official minimum. We help buyers across the credit spectrum find suitable mortgage options.
Down payments range from 0% (VA, USDA) to 3% (Conventional 97) to 3.5% (FHA). Many buyers also qualify for down payment assistance programs.
Yes! All major programs—FHA, VA, Conventional, and USDA—allow gift funds from family members for down payment and closing costs with proper documentation.
From application to closing typically takes 30-45 days. Getting pre-approved before house hunting speeds up the process when you find the right home.
Yes! FHA and VA programs allow you to purchase 2-4 unit properties with low or no down payment as long as you live in one unit. This "house-hacking" strategy helps build wealth.
Ready to Apply for First Time Home Buyer Loans?
We specialize in helping new buyers navigate the mortgage process. Get pre-approved today and start your journey to homeownership.