First Time Home Buyers

First time home buyer programs aren’t limited to true first-time buyers — if you haven’t owned a home in the last three years, you likely qualify. These programs layer benefits like lower down payments, reduced mortgage insurance, and improved pricing on top of standard loan types including Conventional, FHA, VA, and USDA. In many cases, the income used to qualify matters more than how much you’ve saved.

Fast facts

• First time buyer definition: You may be considered a first-time home buyer if you have not owned a home in the past three years
• Only one borrower needs to qualify: Only one borrower in the household needs to meet the first-time buyer definition
• Common loan programs: Most first-time buyer options fit within Conventional, FHA, VA, and USDA loans, with specific perks added when you qualify
• Down payment ranges: Many first-time buyer programs allow 0 percent to 3.5 percent down, with minimal mortgage insurance compared to standard options

First time buyer perks

Many buyers assume they need a large down payment or perfect finances to buy their first home. In reality, most first-time buyer options are designed to improve affordability through better loan structure rather than higher risk.

Possible benefits include:

• Lower down payment requirements
• Reduced monthly mortgage insurance
• Better interest rates for qualifying buyers
• Lower total fees in many cases
• Flexibility for borrowers with strong income but limited savings

Our role is to help you find the option that gives you the best balance of payment, rate, and upfront cost.

HomeReady and Home Possible programs

Two strong options we offer are HomeReady and Home Possible — both are also available for refinances and non first-time buyers.

These programs are income restricted to 80 percent of Area Median Income and can offer excellent pricing for:

• Home purchases
• Refinances

For buyers who qualify, these are often some of the most cost-effective conventional loan options available.

Reduced pricing under 100 percent of area income

If your income falls below 100 percent of the local income limits, you may qualify for:

• Reduced interest rates
• Improved pricing compared to standard conventional loans

These benefits can also apply in certain non first-time buyer situations, such as manufactured home purchases where pricing is often higher. When available, these adjustments can make a meaningful difference in affordability.

How qualifying income affects your options

The income-restricted conventional programs focus on qualifying income — not total household income. This is a huge deal.

In some cases, we can structure a loan using only required income sources while excluding others that aren’t needed for qualification, such as:

• Bonus income
• Overtime
• A spouse’s income
• Other non-required income sources

As long as debt-to-income ratios still work, this approach can unlock better pricing and lower mortgage insurance while keeping payments comfortable. This is often where the long-term savings come from. The majority of loan officers don’t know or aren’t good enough at using these guidelines — we have a staggering number of refinances where we get borrowers into these programs even though the original purchase lender missed it entirely.

Not sure where you fit?

If you’re unsure which path makes the most sense, we can usually narrow it down quickly. That might be FHA, VA, Conventional, USDA, or an income-restricted first-time buyer option.

Browse our other loan program pages for more detail, then reach out and we’ll help you map out the best path for your situation.