First-Time Home Buyer
First-Time Home Buyer Rates & Programs
Every first-time buyer program at a glance, with live wholesale rates so you can see exactly what you qualify for. Pair with state DPA programs to reduce down payment further. $2,000 Best Price Guarantee on qualifying loans.
First-Time Buyer Programs Compared
| Program | Min down | Min FICO | Best for |
|---|---|---|---|
| Conventional 97 | 3% | 620 | FICO 700+ first-timers wanting removable MI |
| HomeReady / Home Possible | 3% | 620 | Low/moderate income, reduced MI pricing |
| FHA | 3.5% | 580 | Lower FICO or thin credit file |
| VA | 0% | 580 (typical overlay) | Veterans, active-duty, and qualifying spouses |
| USDA | 0% | 640 | Rural and suburban-fringe properties |
Live rates across all programs
Toggle the tabs below to see Conventional, FHA, and VA pricing for the same scenario. No personal info required.
Conventional Loan Facts
- Down payment as low as 3% for first-time homebuyers, 5% for others
- Down payment assistance programs available to fully cover the 3% down payment
- Private Mortgage Insurance (PMI) required below 80% LTV - automatically removed at 78%
- Maximum DTI typically 45%, up to 50% with strong compensating factors
- Minimum credit score generally 620; best rates at 740+
- Available for primary residence, second home, or investment property
- No upfront mortgage insurance premium - only monthly PMI if applicable
Pair with Down Payment Assistance
Most states offer down payment assistance (DPA) - grants or second mortgages that cover part or all of your down payment. Pair a DPA with one of the programs above and your out-of-pocket can drop close to zero.
See DPA programsFrequently Asked Questions
What is the best loan for a first-time home buyer?+
It depends on FICO and down payment. Conventional HomeReady/Home Possible (3% down) is best for 700+ FICO; FHA (3.5% down) is best for 580-700 FICO; VA (0% down) is best for veterans; USDA (0% down) is best for rural areas. The pricer above compares all options.
How much down payment do I need as a first-time buyer?+
As little as 0% with VA or USDA, 3% with Conventional first-time buyer programs (HomeReady, Home Possible), or 3.5% with FHA. Down payment assistance (DPA) programs can cover some or all of the down payment in many states.
What credit score do I need for first-time buyer programs?+
620+ for Conventional first-time buyer products. 580+ for FHA at 3.5% down. VA has no published minimum but most lenders want 580+. The pricer above lets you select your FICO bracket and see live rates.
What is HomeReady or Home Possible?+
HomeReady (Fannie Mae) and Home Possible (Freddie Mac) are 3%-down Conventional loans designed for low- and moderate-income first-time buyers. They offer reduced PMI and flexible income eligibility. The pricer shows live rates when these products are the best fit.
Can I get down payment assistance as a first-time buyer?+
Yes. Every state has DPA programs - some grants (no repayment), some second mortgages (forgivable or deferred). Visit our DPA page to see programs available in your state and pair them with the pricer above.
Is the $2,000 Best Price Guarantee available for first-time buyers?+
Yes - on qualifying fixed-rate Conventional, FHA, and VA loans of $200,000+. First-time buyer status is not an exclusion. The Loan Factory $2,000 Best Price Guarantee applies.
First-time buyer ready to apply?
Same-day Loan Estimate and pre-approval. Wholesale pricing, $2,000 Best Price Guarantee on qualifying loans.
Start my application3% down rates
Conventional 97 + HomeReady
FHA loan rates
3.5% down, 580+ FICO
DPA programs
State-by-state assistance