first time homebuyer guide
A step-by-step guide for first time homebuyers, understand the process, explore first time homebuyer loan options, and buy with confidence.
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We offer a variety of loan options for first-time home buyers.
Programs that can help you buy with little to no money down
Learn more →
100% secured. No impact to your credit scores.
Which one is the better one for you?
|
Program
|
Down Payment
|
Credit Score
|
Best For
|
|---|---|---|---|
|
FHA
|
3.5%
|
580
|
Lower credit
|
|
Conventional
|
3%
|
620+
|
Strong Credit
|
|
VA
|
0%
|
580+
|
Veterans
|
|
USDA
|
|||
We compare rates from 40+ lenders to find competitive options that fit your needs. You’ll get expert guidance, personalized solutions, and a partner who works for you.
We compare rates from 40+ lenders to find competitive options that fit your needs. You’ll get expert guidance, personalized solutions, and a partner who works for you.
You may be considered a first-time home buyer if you have not owned a primary residence within the last three years.
The amount needed depends on the loan program you choose.
For first-time homebuyers, conventional loans allow as little as 3% down, FHA loans require 3.5% down, and USDA and VA loans offer 0% down payment options for eligible borrowers.
In addition to your down payment, you should also budget for closing costs, inspections, and moving expenses.
Credit score requirements vary by loan type.
FHA loans is one of the most lenient programs and it allows credit scores as low as 580, while many conventional loans require a minimum score of 620.
Higher credit scores often result in better interest rates and lower monthly payments
There is no single best loan for every first time homebuyer. For example, FHA loans can be great for borrowers with lower credit scores, conventional loans may work well for buyers with strong credit, USDA loans offer 0% down financing in eligible rural areas, and VA loans provide significant benefits for eligible veterans and active-duty service members.
Yes. USDA loans and VA loans offer eligible borrowers the opportunity to purchase a home with no down payment.
Also, At Andes Mortgage we offer different down payment assistance programs and grants that may help cover a portion or all of the required down payment and closing costs.
Down payment assistance programs provide grants, forgivable loans, or second mortgages that can help eligible buyers cover some or all of their down payment and closing costs. These programs can make homeownership more accessible for first-time buyers.
Absolutely! Here at Andes Mortgage we offer multiple down payment assistance, grants and state-driven down payment assistance initiatives. Our down payment assistance options can give you anywhere between 2 to 5% of the purchase price for down payment and/or closing costs.
Yes. A mortgage pre-approval helps you understand your budget, strengthens your offer when purchasing a home, and allows you to identify potential financing issues before you begin shopping.
No, you do not have to be a first-time homebuyer to be able to use an FHA loan. You can use FHA as many times as you’d like, the only difference is that most people cannot have more than one oustanding FHA loan at a time.
No. One of the biggest misconceptions among first-time home buyers is that a 20% down payment is required. Many loan programs allow significantly lower down payments, and some buyers may qualify for 0% down financing or down payment assistance programs.
That last FAQ tends to perform incredibly well because it addresses one of the biggest myths keeping buyers from entering the market.
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