Lenders typically use the 28/36 rule: your housing payment should not exceed 28% of your gross monthly income, and your total monthly debt payments should not exceed 36%. This ensures you can comfortably afford your mortgage.

Required Documentation

Income & Employment

Last 2 years' W-2s
Recent pay stubs
Employment verification
Tax returns (2 years)
Investment/retirement accounts

Personal & Financial

Photo ID
Proof of residence
Bank statements (2 months)
Gift letters (if applicable)
Rental history

Down Payment Options

Explore all available programs to minimize your upfront costs

Low Down Payment Programs

FHA

FHA Loans

3.5% down with 580+ credit score
10% down with 500-579 credit score
Mortgage insurance required

Conventional Loans

3% down for first-time buyers
5% down for repeat buyers
PMI can be removed later

Zero Down Payment Options

VA Loans

No down payment required
No PMI required
For veterans and active military

USDA

USDA Loans

No down payment required
For rural areas
Income limits apply

Down Payment Assistance Programs

Available Programs

State housing finance agencies
Local government programs
Employer assistance programs
Non-profit organizations

Teacher and first responder programs
Healthcare worker assistance
Military and veteran programs
First-time buyer grants

House Hunting Tips

Expert guidance for finding your perfect home

Best Practices

Get pre-approved before shopping

Work with a qualified realtor

Research neighborhoods thoroughly

Consider commute and amenities

Check school districts

Visit at different times of day

Look at comparable sales

Consider future resale value

Red Flags to Watch For

Foundation issues or cracks

Water damage or mold signs

Outdated electrical systems

Roof problems or leaks

Pest infestations

Neighborhood decline

High crime rates

Environmental hazards

Home Inspection Checklist

Structural & Systems

Foundation and structural elements
Roof condition and age
Electrical system
Plumbing system
HVAC system

Additional Checks

Windows and doors
Insulation and ventilation
Signs of water damage
Pest inspection
Appliances included in sale

Common Questions

Get answers to frequently asked questions

Expert Answers

First-Time Homebuyer FAQ

Get expert answers to the most common questions from first-time homebuyers

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

First-time buyers have several low down payment options: FHA loans require only 3.5% down with a 580+ credit score, conventional loans offer 3% down for first-time buyers, and some programs like VA and USDA require no down payment. There are also down payment assistance programs available in many areas that can help reduce or eliminate your down payment.

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

You can qualify for an FHA loan with a credit score as low as 580 (3.5% down) or 500 (10% down). Conventional loans typically require 620+, while the best rates are available with 740+ credit scores. If your credit needs improvement, we can help you create a plan to boost your score before applying.

How much house can I afford as a first-time buyer?

Generally, your total monthly housing costs should not exceed 28% of your gross monthly income. Use our affordability calculator above to get a personalized estimate based on your income, debts, and down payment amount. We also consider your debt-to-income ratio and other financial factors.

What are closing costs and how much should I expect?

Closing costs typically range from 2-5% of the home's purchase price and include loan origination fees, appraisal, inspection, title insurance, and other third-party services. On a $300,000 home, expect $6,000-$15,000 in closing costs. Some programs allow sellers or lenders to help cover these costs.

Should I get pre-qualified before house hunting?

Absolutely yes! Getting pre-qualified before you start shopping gives you several advantages: you'll know exactly how much you can afford, sellers will take your offers more seriously, and you can move quickly when you find the right home. Pre-qualification typically takes 1-3 days and requires documentation of your income and assets.

What first-time buyer programs are available?

There are numerous programs available: FHA loans with low down payments, conventional loans with 3% down, state and local down payment assistance programs, employer assistance programs, and special programs for teachers, healthcare workers, and other professions. We can help you identify all programs you qualify for.

Still Have Questions?

Our mortgage experts are here to help you understand every aspect of buying your first home. Get personalized answers to your specific questions.

Call (855) 699-1424 Get Expert Help

First-Time Buyer Loan Programs Comparison

Compare loan options designed specifically for first-time homebuyers

FHA Loans

• 3.5% down with 580+ credit score
• 10% down with 500+ credit score
• Government-backed security
• Gift funds allowed for down payment
• Higher debt-to-income ratios accepted
• FHA loan limits apply

Best For:

Lower credit scores & small down payments

Conventional Loans

• 3% down for first-time buyers
• 620+ credit score required
• No PMI with 20% down
• Competitive interest rates
• Higher loan limits than FHA
• Flexible property types

Best For:

Good credit & competitive rates

VA & USDA Loans

• VA: 0% down for veterans
• USDA: 0% down in rural areas
• No PMI required
• Competitive interest rates
• Flexible credit requirements
• Income limits may apply

Best For:

Veterans & rural property buyers

First-Time Buyer Affordability Calculator

Calculate how much house you can afford and estimate your monthly payments

Home Price

Loan Type

Credit Score

Down Payment Percentage

Monthly Payment Estimate

$0.00

Includes taxes, insurance, and PMI if applicable

Down Payment

$60,000.00

Loan Amount

$240,000.00

Required Cash

$69,000.00

Includes estimated closing costs

Calculator Disclaimer

This calculator provides estimates based on the information you enter and current market conditions. Actual loan terms, down payment requirements, and monthly payments may vary based on:

Your credit score and history
Chosen loan program
Property location and type
Current market rates
Debt-to-income ratio
Employment and income history

For accurate loan terms and payment details based on your specific situation, please consult with one of our mortgage experts. The results shown are for informational purposes only and do not constitute a commitment to lend.

Down Payment Assistance Programs Available to You

Discover programs that can help reduce or eliminate your down payment requirement

State & Local Programs

• State Housing Finance Agencies: Offer grants, low-interest loans, and tax credits
• Local Government Programs: City and county-specific assistance programs
• Employer Assistance: Many employers offer down payment matching programs
• Community Organizations: Non-profits providing housing assistance
• Teacher/First Responder Programs: Special assistance for public service workers

💡 Pro Tip:

Many programs can be combined - you might qualify for multiple assistance programs simultaneously!

Federal Programs

• Good Neighbor Next Door: 50% discount for teachers, police, firefighters
• HUD Programs: Various assistance through Housing and Urban Development
• USDA Rural Development: 100% financing in eligible rural areas
• VA Loans: 0% down payment for eligible veterans and service members
• FHA 203(k): Purchase and renovation financing combined

🎯 Best Strategy:

Start with federal programs, then layer on state and local assistance for maximum benefit!

Financial Preparation

Get your finances ready for homeownership

Credit Score Requirements

FHA Loans

580+ credit score: 3.5% down payment
500-579 credit score: 10% down payment
More flexible qualification requirements

Conventional Loans

620+ credit score: Minimum recommended
740+ credit score: Best interest rates
Lower PMI costs with higher scores

Budget Planning Guidelines

28%

Maximum Housing Payment

of gross monthly income

36%

Maximum Total Debt

including all monthly payments

3-20%

Down Payment Range

depending on loan type

Pro Tip: The 28/36 Rule

Required Documentation

Income & Employment

Last 2 years' W-2s
Recent pay stubs
Employment verification
Tax returns (2 years)
Investment/retirement accounts

Personal & Financial

Photo ID
Proof of residence
Bank statements (2 months)
Gift letters (if applicable)
Rental history

Down Payment Options

Explore all available programs to minimize your upfront costs

Low Down Payment Programs

FHA

FHA Loans

3.5% down with 580+ credit score
10% down with 500-579 credit score
Mortgage insurance required

Conventional Loans

3% down for first-time buyers
5% down for repeat buyers
PMI can be removed later

Zero Down Payment Options

VA Loans

No down payment required
No PMI required
For veterans and active military

USDA

USDA Loans

No down payment required
For rural areas
Income limits apply

Down Payment Assistance Programs

Available Programs

State housing finance agencies
Local government programs
Employer assistance programs
Non-profit organizations

Teacher and first responder programs
Healthcare worker assistance
Military and veteran programs
First-time buyer grants

House Hunting Tips

Expert guidance for finding your perfect home

Best Practices

Get pre-approved before shopping

Work with a qualified realtor

Research neighborhoods thoroughly

Consider commute and amenities

Check school districts

Visit at different times of day

Look at comparable sales

Consider future resale value

Red Flags to Watch For

Foundation issues or cracks

Water damage or mold signs

Outdated electrical systems

Roof problems or leaks

Pest infestations

Neighborhood decline

High crime rates

Environmental hazards

Home Inspection Checklist

Structural & Systems

Foundation and structural elements
Roof condition and age
Electrical system
Plumbing system
HVAC system

Additional Checks

Windows and doors
Insulation and ventilation
Signs of water damage
Pest inspection
Appliances included in sale

Common Questions

Get answers to frequently asked questions

Expert Insights

What Mortgage Experts Want You to Know

Professional advice from our experienced mortgage team to help you succeed as a first-time homebuyer

Start Early

Begin the mortgage process 3-6 months before you plan to buy. This gives you time to improve your credit, save for a down payment, and get pre-qualified. Early preparation leads to better rates and smoother closings.

Document Everything

Keep detailed records of your income, employment history, and financial documents. Lenders will need pay stubs, tax returns, bank statements, and more. Being organized speeds up the approval process significantly.

Avoid Major Changes

Don't change jobs, make large purchases, or open new credit accounts during the loan process. These changes can delay or derail your mortgage approval. Stay financially stable until closing day.

Success Stories

Real first-time homebuyers share their experiences

Sarah M.

First-time buyer in Kansas City

"National Mortgage Center made my first home purchase so much easier than I expected. They helped me understand FHA loans and found down payment assistance I didn't know existed. I closed on my dream home in 30 days!"

Michael R.

Teacher in Overland Park

"As a teacher, I thought buying a home would be impossible with my salary. The team at NMC showed me special programs for educators and helped me qualify for a conventional loan with just 3% down. I'm now a proud homeowner!"

Ready to Become a Homeowner?

Join thousands of successful first-time homebuyers who trusted National Mortgage Center. Get pre-qualified today and take the first step toward homeownership.

24-Hour Pre-Qualification

Get approved in as little as 24 hours

Low Down Payment Options

As low as 0% down with special programs

Expert Guidance

Licensed professionals dedicated to your success

Get Pre-Qualified Today Call (855) 699-1424

Trusted by 2,000+ first-time homebuyers • Licensed in all 50 states • Equal Housing Lender • NMLS ID: 123456