Skip to content
Purchase Mortgage Loan
Get Pre-Approved

What loans are available for first-time home buyers?

Quick answer

First-time home buyers can choose FHA loans (3.5% down), conventional 97% programs like HomeReady and Home Possible (3% down), VA loans (0% down for eligible military) and USDA loans (0% down in eligible areas). Many pair these with state housing finance agency down payment assistance. 'First-time' usually means you haven't owned a home in the past three years.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated
Min. down: 0%–3.5%Min. credit: 580–620

Compare first-time buyer loan options

LoanMin. downMin. creditMortgage insurance
FHA3.5%5801.75% upfront + annual MIP
Conventional 97 / HomeReady / Home Possible3%620PMI, removable
VA0%Lender-set (~580–620)None (funding fee)
USDA0%~6401% upfront + 0.35% annual

Who counts as a first-time home buyer?

Under HUD and most agency definitions, you're a first-time buyer if you haven't owned a principal residence in the last three years. Single parents and displaced homemakers who only owned with a former spouse may also qualify.

How to get started

  • Check your credit and pay down revolving balances.
  • Estimate your budget with an affordability calculator.
  • Look up your state's housing finance agency programs.
  • Get pre-approved so you know your price range before house hunting.

First-Time Buyer loans by state

First-Time Buyer loans in AlabamaFirst-Time Buyer loans in AlaskaFirst-Time Buyer loans in ArizonaFirst-Time Buyer loans in ArkansasFirst-Time Buyer loans in CaliforniaFirst-Time Buyer loans in ColoradoFirst-Time Buyer loans in ConnecticutFirst-Time Buyer loans in DelawareFirst-Time Buyer loans in District of ColumbiaFirst-Time Buyer loans in FloridaFirst-Time Buyer loans in GeorgiaFirst-Time Buyer loans in HawaiiFirst-Time Buyer loans in IdahoFirst-Time Buyer loans in IllinoisFirst-Time Buyer loans in IndianaFirst-Time Buyer loans in IowaFirst-Time Buyer loans in KansasFirst-Time Buyer loans in KentuckyFirst-Time Buyer loans in LouisianaFirst-Time Buyer loans in MaineFirst-Time Buyer loans in MarylandFirst-Time Buyer loans in MassachusettsFirst-Time Buyer loans in MichiganFirst-Time Buyer loans in MinnesotaFirst-Time Buyer loans in MississippiFirst-Time Buyer loans in MissouriFirst-Time Buyer loans in MontanaFirst-Time Buyer loans in NebraskaFirst-Time Buyer loans in NevadaFirst-Time Buyer loans in New HampshireFirst-Time Buyer loans in New JerseyFirst-Time Buyer loans in New MexicoFirst-Time Buyer loans in New YorkFirst-Time Buyer loans in North CarolinaFirst-Time Buyer loans in North DakotaFirst-Time Buyer loans in OhioFirst-Time Buyer loans in OklahomaFirst-Time Buyer loans in OregonFirst-Time Buyer loans in PennsylvaniaFirst-Time Buyer loans in Rhode IslandFirst-Time Buyer loans in South CarolinaFirst-Time Buyer loans in South DakotaFirst-Time Buyer loans in TennesseeFirst-Time Buyer loans in TexasFirst-Time Buyer loans in UtahFirst-Time Buyer loans in VermontFirst-Time Buyer loans in VirginiaFirst-Time Buyer loans in WashingtonFirst-Time Buyer loans in West VirginiaFirst-Time Buyer loans in WisconsinFirst-Time Buyer loans in Wyoming

Frequently asked questions

No. Most first-time buyers put down far less than 20%; 3%–3.5% is common, and VA or USDA loans allow 0%.

There is no current federal first-time buyer tax credit, but some states offer Mortgage Credit Certificates that reduce federal taxes.

See First-Time Buyer options from lenders near you

Answer a few quick questions and get matched with purchase mortgage lenders in your area. Free, and it won't affect your credit score.

Get My Matches

Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.