First-Time Home Buyer Loans
Discover programs designed to help first-time buyers achieve homeownership with low down payments, flexible credit requirements, and down payment assistance.
3%
Min Down Payment
580
Min Credit (FHA)
$15K+
DPA Available
See First-Time Buyer Options
Get matched with programs you qualify for.
First-Time Buyer Loan Programs
Compare the most popular loan programs for first-time buyers and find the best fit for your situation.
FHA Loan
Government-backed loans with flexible requirements. Popular for first-time buyers with lower credit scores.
Best for: Buyers with credit scores 580-679 or limited savings
Pros
- Low down payment
- Flexible credit requirements
- Assumable loan
Cons
- -Mortgage insurance for life of loan
- -Loan limits apply
- -Property must meet FHA standards
Conventional 97
Fannie Mae/Freddie Mac program allowing just 3% down for first-time buyers.
Best for: Buyers with good credit (680+) wanting lowest overall cost
Pros
- Lower PMI than FHA
- PMI removable at 20% equity
- No upfront MI fee
Cons
- -Higher credit requirements
- -PMI required until 20% equity
- -Stricter DTI limits
VA Loan
No down payment loans for veterans, active military, and eligible spouses.
Best for: Veterans and active-duty military members
Pros
- No down payment
- No PMI
- Competitive rates
Cons
- -VA funding fee
- -Military service required
- -Property restrictions
USDA Loan
Zero down payment loans for rural and suburban areas with income limits.
Best for: Buyers in rural/suburban areas with moderate income
Pros
- No down payment
- Low mortgage insurance
- Competitive rates
Cons
- -Geographic restrictions
- -Income limits
- -Property must be primary residence
Down Payment Assistance Programs
Many first-time buyers qualify for down payment assistance that can cover part or all of your down payment and closing costs.
Grants
Free money that doesn't need to be repaid. Often from state/local governments or nonprofits.
Amount: Typically $5,000-$15,000
Requirements: Income limits, first-time buyer status, homebuyer education
Forgivable Loans
Second mortgage that's forgiven after you live in the home for a set period (usually 5-10 years).
Amount: Often 3-5% of purchase price
Requirements: Must remain in home for forgiveness period
Deferred Payment Loans
Second mortgage with no payments required until you sell, refinance, or pay off your first mortgage.
Amount: Typically up to 5% of purchase price
Requirements: Repayment triggered by sale/refinance
Matched Savings Programs
Programs that match your savings 2:1 or 3:1 for down payment funds.
Amount: Varies by program
Requirements: Participation in savings program, income limits
Arizona Down Payment Programs
Arizona offers several state and local programs for first-time buyers.
Arizona Home Plus
Up to 5% of loan
Down payment and closing cost assistance
Pathway to Purchase
Up to $20,000
For buyers in Maricopa County
HOME Plus
Up to 5%
Statewide DPA with competitive rates
See Phoenix-area programs or check rates in other Arizona cities.
The Home Buying Process
A step-by-step guide for first-time buyers.
Check your credit and finances
Review your credit report, calculate your budget, and start saving for down payment and closing costs.
Get pre-approved
Work with a lender to get pre-approved so you know your budget and can make strong offers.
Find a real estate agent
Partner with a buyer's agent who knows your target neighborhoods and can guide you through the process.
Start house hunting
Tour homes within your budget and identify must-haves vs. nice-to-haves.
Make an offer
Work with your agent to submit a competitive offer based on market conditions.
Complete inspections
Hire inspectors to evaluate the home's condition and negotiate repairs if needed.
Final approval and closing
Complete underwriting, do a final walkthrough, and sign closing documents.
Homebuyer Education
Homebuyer education courses prepare you for the responsibilities of homeownership and may be required for certain loan programs or down payment assistance.
- Required for many DPA programs
- May reduce PMI costs
- Learn about budgeting and maintenance
- HUD-approved courses available online
- Typically 4-8 hours, $75-$125
What You'll Learn
- Understanding different mortgage types
- Creating and managing a household budget
- The home buying process step-by-step
- Home maintenance and repairs
- Protecting your investment
- Avoiding foreclosure
First-Time Buyer FAQ
Who qualifies as a first-time home buyer?
For most programs, a first-time buyer is someone who hasn't owned a home in the past 3 years. This includes people who've never owned a home, as well as those who owned previously but have been renting for 3+ years. Some programs also count single parents who only owned with a former spouse.
How much do I need for a down payment?
First-time buyers can put down as little as 0% (VA, USDA) or 3-3.5% (Conventional 97, FHA). However, putting down more reduces your monthly payment and may help you avoid mortgage insurance. Many buyers aim for 5-10% to balance upfront costs with monthly savings.
What credit score do I need to buy a house?
Minimum scores vary by loan type: FHA allows 580 (or 500 with 10% down), Conventional typically requires 620+, VA usually needs 620+, and USDA requires 640+. However, higher scores (680+) unlock better rates and terms. Improving your score before buying can save thousands.
What are closing costs and how much should I expect?
Closing costs typically run 2-5% of the purchase price and include lender fees, title insurance, appraisal, inspections, prepaid taxes/insurance, and more. On a $350,000 home, expect $7,000-$17,500. Some programs and sellers will help cover these costs.
Should I complete homebuyer education?
Yes, for several reasons: Many down payment assistance programs require it, it can reduce PMI costs, and it prepares you for homeownership responsibilities. HUD-approved courses are available online for $75-$125 and take 4-8 hours to complete.
Ready to Start Your Homeownership Journey?
Get matched with first-time buyer programs and see what you qualify for.