What Is a First Time Home Buyer?
For FHA loans, the Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development (HUD), considers you a first-time home buyer if you are:
- someone who has never owned a home
- someone who hasn’t owned a home in the past three years
- a couple where one spouse has never owned a home and the other is a homeowner
- a displaced homemaker who has only owned a home with a spouse
- a single parent who has only owned a home with a former spouse
- someone who has owned a home that was not permanently affixed to a foundation, such as a mobile home
- someone who has owned a home that doesn’t comply with local or state building codes and can’t be brought into compliance for less than the cost of building a permanent structure
Check with Vic on the nuances of your unique situation to see if you qualify.
Free Consultation 510-655-2868
First Time Home Buyers, Start Here!
So, you are ready to buy your first home? Congratulations!
You may be interested in a single unit property (single family residence, condo, or townhouse) or an owner occupied multi-unit residential property (duplex, triplex or fourplex). Either way, if this is your first time taking out a mortgage, here are a few things you need to know about first time home buyer mortgage loans:
#1: There are special loans and loan programs designed just for you!
#2: Pre-approval will vastly improve your chances of having your offer accepted
For detailed information about why this is recommended and how to get pre-approved, read our article Why Get Pre-Approved to learn more.
#3: You may be able to get a loan, whether or not you have the money for a down payment
There are different types of first-time home buyer mortgage loan programs; variations are impacted by your credit scores/credit history, type of job, income level, available funds, and property location. The short answer is this:
No matter where you are in your life, your credit history, or accumulated savings, talk to us.
We have access to programs that may help you purchase your first home, even if you have:
- limited credit (shorter length of time)
- limited credit breadth (lacking multiple types of credit)
- lower credit score
- less money for a down payment
- or any combination of these.
Programs for First-Time Buyers
From 0% to 3.5% Down, With Options for Every Credit Profile
You don’t need 20% down or perfect credit to buy your first home. Depending on your military status, where the property is located, and your income, there are several ways to get in with little or nothing down.
- VA Loans: 0% down for veterans and service members, with no monthly mortgage insurance
- USDA Loans: 0% down in eligible rural and suburban areas
- Conventional: as little as 3% down for qualified buyers
- FHA: 3.5% down, with flexible credit guidelines
- Down Payment Assistance: can bring your out-of-pocket down payment to 1% or even 0% when combined with FHA, depending on program availability
- Reduced-Rate Programs: may be available for first-time buyers who meet income limits
Not sure which fits? Tell us about your situation and we’ll match you to the right program. Learn more about zero down and limited down payment options →
Steps to Buying a House for the First Time
Mortgage 101
We start with an informational meeting I call “Mortgage 101.” This is my free consultation with you.
- I look at your personal, unique, financial scenario, educate you regarding what you need to know about the mortgage process.
- I’ll lay out your options based on what loan products you can qualify for, whether or not you have the funds for a down payment.
- I analyze your individual situation and help you understand what you can purchase and what price range fits within your budget.
- At that point, if you are ready, I will collect your information and we can start the preapproval process.
- If you have great credit, and easy access to a down payment for 20% or more of your desired home price, that’s fantastic!
- If not, I will work with you to explain your options, including giving you concrete steps for raising your credit score, and different types of financing and insurance that can make your dream possible!
- Next, we’ll shop our panel of 150+ wholesale lenders to find the right loan at a competitive rate, with the best value for your hard-earned credit and cash.
Contact Me to Start the Process!
There’s no obligation involved — just a free consultation that will possibly be the first step to buying your first home.
Contact Vic to buy your first home!